HMM posts 52% jump in Q2 operating profit despite Middle East war

HMM announced Thursday that it posted sales of 3.4 trillion won ($2.4 billion) and operating profit of 354.1 billion won in the second quarter, up 30 percent and 52 percent, respectively, from the same period last year — despite revenue losses and higher costs stemming from the Middle East war.

For the first half of the year, sales reached 6.12 trillion won, a 12 percent increase from a year earlier. However, operating profit fell 26 percent to 623.2 billion won.

The operating profit margin stood at 10.2 percent, keeping HMM among the top performers globally. The company said it has built a resilient earnings structure even amid uncertain market conditions.

The Shanghai Containerized Freight Index averaged 1,957 points in the first half of this year, up 15 percent from the same period last year. Although the Middle East war triggered revenue losses and higher fuel costs from March onward, freight rates rebounded after the peak season arrived early in late May.

HMM said supply chain risks — including US tariffs, congestion at the Panama Canal and major ports, and the ongoing Middle East war — are expected to persist in the third quarter, adding to uncertainty.

"We are optimizing fuel costs in response to high oil prices following the Middle East war," an HMM official said. "We are also working to maximize fleet operational efficiency through strategies such as hub-and-spoke routing, while pursuing new demand in Southeast Asia and other markets."

Meanwhile, HMM said it has committed 10 trillion won in investment over the 15 months through the first half of 2026 and plans to continue investing in the second half. The company described the spending not as simple expansion but as a preemptive move based on projections of market conditions two to three years out — securing vessels early as global shipbuilding prices continue to rise, with the aim of maximizing future profits.

"We are laying the groundwork to become a top-tier global carrier through large-scale investment, including expanding the investment target under our 2030 mid-to-long-term strategy to around 29 trillion won," the official said.