Singamas, the fourth largest container manufacturer, announced on 15 March that 2022 net profit fell 73% year-on-year to US$56.57 million as container trade slowed in 2H 2022 and there was an oversupply of containers.
Revenue fell 33% to US$775.98 million. Turnover from Singamas’ core business of manufacturing dry containers, was down 40% to US$610.09 million, as 242,000 dry boxes were sold in 2022, a drop from 347,000 TEUs sold in 2021.
The average selling price of Singamas’ containers was US$2,836 per box, down from US$3,521 in 2021, as costs of the main raw material, steel, dropped due to a slowdown in China’s property sector.
Singamas said that it leveraged flexible production to increase the output of customised and specialised containers as their demand rose appreciably in the second half of 2022.
Such demand was driven both locally and abroad, and particularly by renewable energy storage and equipment containers.
Singamas hopes that demand for boxes will pick up in the second half of 2023, backed by the record boxship newbuilding orders made from 2020 to 2021.
Singamas stated, “Given the tremendous potential that the energy storage and equipment containers hold, the group will dedicate more resources to capitalise on relevant opportunities and will remain vigilant against cost pressures in face of steel price fluctuation brought by the ups and downs of China’s property sector and automobile manufacturing sector. Ahead of this possibility, we will continue to invest in automation to improve efficiency and ensure that the group remains highly agile.”
Martina Li
Asia Correspondent
