Matson Q2 income likely to more than double to $377mn
Ocean transportation operating income for Q22022 is seen between $465-470 million as against $201 million in Q22021.
NYSE-listed Matson is expected to report an earnings per share (EPS) of $9.31-$9.42 for the second quarter ended June 30, 2022 compared to $3.71 in the same period last year.
Net income is likely to be $373.3-$377.9 million compared to $162.5 million in the corresponding quarter last year, according to a statement released yesterday.
Ocean transportation operating income for Q22022 is seen between $465-470 million as against $201 million in Q22021.
"Matson performed well in the second quarter of 2022 with higher year-over-year operating income in both Ocean Transportation and Logistics," says Chairman and Chief Executive Officer Matt Cox. "Within Ocean Transportation, our China service continued to see significant demand for its expedited ocean services as volume for e-commerce, garments and other goods remained elevated.
"The increase in consolidated operating income year-over-year was driven by continued strength in the China service. In recent weeks, we have seen a gradual decline in the Transpacific freight rate environment off the highs experienced earlier this year. This indicates that rates have likely peaked for now, and, at this time, we expect an orderly marketplace for the remainder of the year with our vessels continuing to operate at or near capacity and earning a significant rate premium to the market because of our differentiated, fast ocean services."
China volume was 11.7 percent higher as a result of four more eastbound voyages than the prior year (based on FEU).
"Volume for e-commerce, garments and other goods remained elevated, and was the driver of year-over-year increase in Q22022 consolidated operating income."
Other containers volume increased 19.2 percent, primarily due to the addition of China-Auckland Express (CAX) volume in the South Pacific, the statement added.
Matson, a U.S-owned and operated transportation services company, repurchased approximately 1.6 million shares in Q22022. The results would be announced on August 1, 2022.
