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Overview of HMM. Hyundai Merchant Marine Co., Ltd. (“HMM”) was established in 1976 and is one of the leading global logistics company “HMM” has a highly diversified and stable revenue ; Container, Tanker, LNG carrier and Ore/Coal carrier - PowerPoint PPT Presentation
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2008/9 HULL RENEWAL
2
Overview of HMM
■ Hyundai Merchant Marine Co., Ltd.
(“HMM”) was established in 1976 and is
one of the leading global logistics
company
■ “HMM” has a highly diversified and
stable revenue ; Container, Tanker,
LNG carrier and Ore/Coal carrier
■ HMM is a member of The New World
Alliance (TNWA) with APL&MOL, and
Grand Alliance(GA) with OOCL, NYK,
MISC and HLC
■ 2007 Revenue Breakdown
USD 5,480 Mil.
3
Revenue
■ 2007 USD revenue rose by 11% YoY to USD 5,480 Mil. from USD 4,955 Mil.
■ Reasons for change in revenue
① Addition of container capacity (mainly in Asia-Europe)
② Increase in container freight rates (Asia-Europe & Intra Asia)
③ Strong Baltic Dry Index (BDI)
■ Revenue
Quarterly Accumulative
804988 1,015
271
231 265176
225248
-
500
1,000
1,500
2,000
4Q06 3Q07 4Q07
Dry Bulk
Wet Bulk
Container
(USD Mil.)
1,251
1,4441,527
4,955
3,938
5,480
3,0812,590
3,619
1,169
731
995
705
617
865
-
1,000
2,000
3,000
4,000
5,000
6,000
4Q06 3Q07 4Q07
(USD Mil.)
4
Operating Profit
■ Operating Profit
Quarterly Accumulative
■ 2007 Operating Profit grew by 231% to USD 338 Mil. from USD 102 Mil. in the same
period of 2006
■ What caused the strong OP?
① Better than expected Asia-Europe and Intra-Asia market, resulting in multiple GRIs
② Super cycle in dry bulk market caused BDI to record all time high
-44
663440
1141
-2
25 36
-70
-20
30
80
130Dry BulkWet BulkContainer
(USD Mil.)
4Q06 3Q07 4Q07
-92
77 112
20695
136
-13
55
90
-150
-50
50
150
250
350
(USD Mil.)
4Q06 3Q07 4Q07
102227
338
-6
101111
5
Business Result in 2007
(USD Mil.) 2005 2006 2007 YoY growth
Total revenue 4,686 4,955 5,480 11%
Operating profit 451 102 338 232%
OP margin 9.6% 2.1% 6.2% 4.11%P
0
0.5
1
0 0 0
Non-Container Container
0
2000
4000
6000
8000
2002 2003 2004
Non-Container Others Dry bulk Tanker/LNG Container
(USD Mil.) 2007 2008E Growth
Total revenue 5,480 6,941 +27%
Operating profit 338 423 +25%
OP margin 6.2% 6.1%
■ 2008 Guidance
6
Container – volume continues to rise
■ Thanks to increasing new container ships to the fleet, 2007 volume increased by 9.8% YoY
to 2.37 Mil. Teu; Transpacific, Asia-Europe and Intra-Asia volume increased by 8.1%,
10.2% and 12.9% YoY respectively
■ 2008 expected container capacity increase 29.6% YoY, and expected volume increase to
2.94 Mil. TEU (24% ↑)
■ Container volume breakdown
26%
51%
23%
Asia Europe US
2.15 Mil. Teu
27%
23%
50% 2.37 Mil. Teu
2006 2007
7
Tanker – drastic index movement continues
■ The market WS averaged 82 in 2007 vs. 99 of same period 2006
■ 175 new VLCCs are to be delivered between 2007-2012, this is about 36% of existing
VLCCs operating in the market
■ Psychological factors pushed up the WS, however, due to relatively mild winter season
and lack of spot activity resulted in a sharp decline of WS.
3529
18 17
38
66
53
2004 2005 2006 2007 2008 2009 2010
■ VLCC deliveries
8
Dry bulk – slowing down but still high
■ BDI averaged 7,106 in 2007 vs. 2,951 of 2006
■ BDI is recovering
- Iron-ore negotiation closed by Korean, Japanese and Chinese steel producers
- Australian coal exports resume
- Queue increases due to port congestion in New Castle, Australia
- Delays in deliveries of bulk vessels by Chinese ship yards
■ Baltic Dry Index (BDI)
2,262 2,4653,050
4,028 4,4625,754
6,572
10,4259,742
7,170 6,874
Jan-
06
Apr
-06
Jul-0
6
Oct
-06
Jan-
07
Apr
-07
Jul-0
7
Oct
-07
Dec
-07
Jan-
08
Feb
-08
9
HMM fleet profile(As of December 2007)
Type Ownership Size No. of vessels Gross Tonage
Container Own >5,000 Teu 7 45,049<5,000 Teu 7 25,366Subtotal 14 70,415
Charter >5,000 Teu 13 80,439<5,000 Teu 15 44,985Subtotal 28 125,424
Container total (teu) 42 195,839
Tanker Own VLCC 8 2,319,289Otehrs 3 205,462
Subtotal 11 2,524,751 Charter VLCC 12 3,454,077
Otehrs 12 1,154,947Subtotal 24 4,609,024
Tanker total (dwt) 35 7,133,775
LNGC Own 125,000~135,000 cbm 6 1,040,000 Charter 126,000 cbm 1 126,000 LNGC total (cbm) Subtotal 7 1,166,000
LPGC Charter (dwt) 51,000 1 50,743 Chemical tanker Charter (dwt) 12,000~14,000 4 53,408
Dry bulk Own Cape size 10 1,593,484Others 1 37,450
Subtotal 11 1,630,934 Charter Cape size 3 485,876
Others 18 922,280Subtotal 21 1,408,156
Dry bulk total (dwt) 32 3,039,090 Total 121
※ Owned & chartered over two years
10
New Vessel Delivery in 2008
TEU GRT
HYUNDAI BRAVE 8,600 94,511 10 January 2008
HYUNDAI COURAGE 8,600 94,511 15 February 2008
HYUNDAI FAITH 8,600 94,511 28 February 2008
HYUNDAI FORCE 8,600 94,511 25 March 2008
HYUNDAI DYNASTY 4,700 52,581 11 April 2008
HYUNDAI VOYAGER 4,700 52,581 18 April 2008
HYUNDAI GOODWILL 4,700 52,581 30 April 2008
HYUNDAI INTEGRAL 4,700 52,581 20 June 2008
HYUNDAI SUPREME 4,700 52,581 27 June 2008
LNG HYUNDAI ECOPIA 150,000 CBM 100,200 28 November 2008
CONTAINER
DELIVERY DATETYPE VESSELCAPACITY
11
Fleet Expansion Plan (Owned)
Fixed Projecting
2007 2008 2009 2010 2011
Container 2,200 teu 3 - 3
4,700 teu 4 5
5,500 teu 4
6,800 teu 3
8,600 teu 4
Tanker 17 9
Bulk H-Coil 1
Capesize 12 4
Handymax 3
Panamax
Heavy MPC 2 2
Box Type 2 1
LNG 6 1
Total no. of vessels 7 0 4 17 (G/T) (676,316) (102,012) (1,183,716)
Total in Dec 2007 : 52 Grand Total in Dec 2011 : 80(4,751,056) (6,713,100)
Type Size
12
Fleet Expansion Plan (Chartered)
Fixed Projecting
2007 2008 2009 2010 2011
Container 3,500 teu 15 - 3 5 2
4,500 teu 8 - 1 3
5,500 teu 3 - 1
6,800 teu 10 4 1
8,600 teu 4
10,000 teu 5
Tanker 19 4 7 1
Bulk Capesize 1 3 1
Panamax 1 4 3 1
Handymax 3 3 1 2 1
LNG 2 6
Total no. of vessels 9 25 10 13
Total in Dec 2007 : 64 Grand Total in Dec 2011 : 121
(3,251,968)
Type Size
13
HMM Vessel List
(As of May 2008)
VESSEL GRT VESSEL GRT VESSEL GRT VESSEL GRT
HYUNDAI OCEANIA 74,052 HYUNDAI STAR 151,592 HYUNDAI GLORY 53,352 HYUNDAI UTOPIA 103,764
HYUNDAI ISLAND 67,897 HYUNDAI BANNER 151,977 HYUNDAI FREEDOM 64,054 HYUNDAI GREENPIA 103,764
HYUNDAI COSMOS 85,678 HYUNDAI SUN 156,692 HYUNDAI GENERAL 64,054 HYUNDAI TECHNOPIA 113,988
HYUNDAI OLYMPIA 93,005 MILLENNIUM 156,692 HYUNDAI HIGHNESS 64,054 HYUNDAI COSMOPIA 113,998
HYUNDAI CONTINENTAL 101,466 PACIFIC COURAGE 145,403 HYUNDAI CONFIDENCE 64,845 HYUNDAI AQUAPIA 113,998
HYUNDAI UNIVERSAL 101,604 VL MALIBU 137,024 HYUNDAI FORWARD 52,581 HYUNDAI OCEANPIA 113,998
HYUNDAI PROSPEPITY 77,650 EL JUNIOR 149,896 HYUNDAI UNITY 52,581 LNG (6 VSL) 341,994
PACIFIC SUCCESS 24,790 LA ESPERANZA 158,475 HYUNDAI GRACE 52,581 HYUNDAI ECOPIA 100,200
HYUNDAI SPIRIT 68,093 LA PAZ 158,475 HYUNDAI COLOMBO 74,651
HYUNDAI ATLAS 76,068 UNIVERSAL HOPE 158,475 HYUNDAI BANGKOK 74,651
HYUNDAI POWER 76,068 UNIVERSAL PEACE 158,475 HYUNDAI JAKARTA 74,651
GLOBAL VICTORY 76,068 PACIFIC SUPERIOR 146,849 HYUNDAI BRAVE 94,511
GLOBAL WINNER 81,152 ASIAN JADE 57,164 HYUNDAI COURAGE 94,511
PACIFIC CHAMP 25,503 ORIENTAL EMERALD 30,971 HYUNDAI FAITH 94,511
PACIFIC ROYAL 25,503 ORIENTAL RUBY 30,971 HYUNDAI FORCE 94,511
BULK (15 VSL) 1,054,597 UNIVERSAL QUEEN 163,465 HYUNDAI DYNASTY 52,581
UNIVERSAL CROWN 163,465 HYUNDAI VOYAGER 52,581
TANKER (17 VSL) 2,276,061 HYUNDAI GOODWILL 52,581
COANTAINER (18 VSL) 1,227,842
HYUNDAI INTEGRAL 52,581
HYUNDAI SUPREME 52,581
* Total : 56 Vessel / 4,900,494 GRT
(20 Jun)
(27 Jun)
(28 Nov)
14
HMM Legal Affairs & Insurance Team
.General Manager
D B Park
Legal PartManager
S C Hwang
Cargo ClaimManagerY S Roh
Chris Paik Jason Lee Seti Min Kevin Kang Rachel HongJustin Roh Joanna Kim Yulia Hwang
AHQ (Denver)ManagerS H Park
EHQ (London)Manager
Shane Kweon
- C/P Disputes
- Litigation
- Casualties
- Contract / Legal Matters
- CNTR Cargo Claim
- Bulk Cargo Claim
- CNTR Box Claim
- Recovery Claim
- Hull Insurance
- P&I Insurance
- TT Club
- Terminal Insurance
15
What would shipping companies want its lawyers?
■ Little information on Chinese Maritime Law and Practice
■ Little information on Chinese Law Firm’s evaluation & Costs
■ Still depend on P&I Club’s recommendation
■ Shipping companies’ concerns
- Difficulties to prepare evidences, when filed in court.
- Huge (Overestimated) deposit or guarantee without presentation of claim breakdown
- MSA (government authorities) involvement and slow progression
- Quick response from the lawyers