Regional Container Lines has announced that it made a profit of THB485 million (US$15.34 million) for the nine months-ended 30 September, improving from a net loss of THB324 million (US$10.6 million) in the same period in 2019.
The Thai feeder operator’s managing director Sumate Tanthuwanit cited lower fuel and chartering costs as the key factors.
In Q3 2020 alone, RCL achieved a net profit of THB257 million (US$8.13 million), as opposed to a net loss of THB307 million (US$10.07 million) in Q3 2019, even as revenues fell to THB4.08 billion (US$129.11 million) from THB 4.12 billion (US$135.13 million) in Q3 2019, as RCL handled fewer containers, 559,000TEU, down from 562,000TEU in Q3 2019 during these three months.
Operating costs fell by 15% to THB3.52 billion (US$111.39 million) during 9M 2020, through efficient capacity management and lower bunker prices, which resulted from the collapse of oil prices amid the Covid-19 pandemic. Chartering costs were also cut by 20% as RCL redelivered some chartered vessels.
RCL’s management said that the Covid-19 pandemic is continuing to evolve, resulting in an economic slowdown and adversely impacting most businesses and industries.
“This situation may bring uncertainties and have an impact on the environment in which the group operates. Nevertheless, the group’s management will continue to monitor the ongoing developments and regularly assess the financial impact in respect of the valuation of assets, provisions and contingent liabilities, and has used estimates and judgement in respect of various issues as the situation has evolved.”