Wan Hai’s outlook stable

Taiwanese owner Wan Hai Lines' improved financial results for the first half of 2014 have supported its Ba3 corporate family rating and its B1 unsecured bond rating, says Moody’s.

The company’s revenue grew 9.6% year on year to TWD 31.4bn ($1.04bn), supported by a 7.2% increase in its shipping volumes, while EBITDA rose 17.5%.

Its unadjusted debt fell to TWD 33.3bn at the end of June (TWD 35.6bn at the end of December) and it is expected that new vessels will generate stronger earnings on improving demand for container services in Asia.

Chenyi Lu, a Moody’s vice-president and senior analyst, said: “Wan Hai's solid year-on-year revenue growth and significantly improved profit margins in the first half were better than we had expected. The results were mainly driven by the improving operating environment in the shipping industry.”

Moody's also forecasts Wan Hai's revenue to grow in the mid-to-high single digits annually over the next one to two years.

Wan Hai operates a fleet of 86 container vessels, of which 72 are owned and 14 were chartered by the end of June.