RCL reports 18% jump in H1 profit driven by Middle East tensions

Thai-listed RCL reported a H1 2024 net profit of THB1.76 billion up 18% on the first half of 2024.

There was a sharp rise in earning Q2 2024 with a net profit THB1.15 billion and 87% higher than Q1 this year, which the company said was largely due to a 12% rise in freight rates against a 1.9% increase in costs. Volumes in the quarter fell by 5%.

For the first half of 2024 RCL reported an 8.1% increase in freight income and a 15% increase in total liftings compared to H1 2023.

“This was primarily due to the rise in freight rates caused by the ongoing tensions in the Middle East. Consequently, there was a shortage of containers due to the extended distance and time required for the transportation,” RCL said.

RCL operates primarily in Asia and the Indian sub-continent, but also has number of services connecting to ports in the Middle East, including two services that transit the Red Sea according to the route network published on its website.

In August RCL will take delivery of a 12,000 teu container ship, the largest vessel it will operate in its own fleet, and planned to be deployed on unspecified long-haul services. The company also has two 7,000 teu vessels to be delivered in September, one of which has already been employed on a long-term charter, while the other will be used for RCL’s own operations.

RCL said it has expanded its service network and invested in additional reefer containers.