[SINGAPORE] Pacific International Lines (PIL) on Friday (May 16) posted a net profit of US$1.3 billion for the FY2024 ended Dec 31, 2024, more than quadrupling from US$306.9 million the previous year.
This was attributed to a significant growth in its operating revenue as well as effective cost management.
Earnings before interest, taxes, depreciation and amortisation jumped to US$1.7 billion, from US$566.2 million.
Meanwhile, revenue grew 49 per cent year on year to US$4.3 billion.
This was led by its container shipping business, which saw revenue increase US$1.3 billion to US$3.8 billion on the back of stronger freight rates and high asset utilisations. A volume growth of 9.6 per cent in a highly disrupted market environment also helped to boost revenue.
For its container manufacturing business, revenue rose US$163.4 million to US$541.1 million. Gains were primarily driven by a surge in demand for dry freight containers due to disruptions from the Red Sea crisis.
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Restocking activities in the US prior to the country’s 2024 presidential election and the delivery of new container vessels to shipping lines during the year also increased demand for containers.
PIL reported a healthy cash balance of US$2.3 billion as at Dec 31, 2024.
To support its goal of operating a more modern, fuel-efficient and environmentally sustainable fleet, the company said it has ordered 18 new liquefied natural gas dual-fuel vessels, of which six have been delivered. These are in addition to PIL’s current fleet of 89 owned vessels and 12 chartered-in vessels.
Lars Kastrup, CEO of PIL, said: “The additional capacity brought on by newbuild vessels coming on stream in 2025 is expected to outpace the market demand for goods, but continued port congestions may absorb some of the capacity growth.”
With the year ahead expected to be filled with uncertainty and heightened challenges, Kastrup said that developments in the volatile market conditions will be monitored closely, and PIL will remain flexible to adapt to changes.
“Our strong cash position is bolstering our financial stability and resilience, and enabling us to continue to seek business growth,” he added.
The company will continue to double down on strategies and initiatives which have worked well for them.
This includes the launch of the PIL Centre for Maritime Efficiency and a memorandum of understanding (MOU) with the Centre of Excellence in Maritime Safety. The first was created to improve the energy efficiency of its ships and fleet, while the MOU enhances the competency of seafarers in safe navigation through technical and soft-skills training.
