RCL recorded 12% increase liftings in Q207

Riding on the back of an extreme robust demand in Europe and Middle East, the Group Shipper Owned Container (SOC) liftings was up by 19% in Q207 at 351,332 TEUs. The Group Carrier Owned Container (COC) liftings was also up by 6% in Q207 at 333,300 TEUs despite a very limited introduction of new capacity to our services. Overall, total liftings of the Group increased 12% year-on-year in Q207 at 684,632 TEUs.

For the first six months, SOC liftings was up by 18% at 683,182 TEUs and COC liftings improved 7% at 644,842 TEUs. These had given rise to a total liftings increase of 12% at 1,328,024 TEUs.

Despite the 12% increase in liftings, total turnover for the second quarter before exchange difference was down marginally by 1% at THB5,003 million. As explained previously, there are a few factors that will affect the turnover. Firstly, the Group revenue is US dollar denominated while the reporting currency is in Thai Baht.

As US dollar continued to weaken against the regional currency in Q207, Thai Baht had strengthened close to 9% against US dollar year-on-year. The Group turnover suffered from this translation loss. Secondly, although SOC volume had out-grown COC in this quarter again, SOC revenue is lower than COC, thus there was an unfavorable freight rate mixed which impacted the average revenue per TEU. Thirdly, rate for Intra-Asia trade had been under pressure since Q405. Although the freight rates steadied since Q406, the rates in Q207 was still lower as compared to Q206.


Other Income in Q207 was up 245% at THB173 million due to a disposal gain of one of the old vessel in April at an amount of THB109 million. For the first six months, total turnover before exchange difference was down by 2% at THB9,900 million.

Contrary to the revenue situation, the strong Thai Baht at the same time provided a translation gain to the Cost of Freight and Operation when majority of the Group? US dollar expenses were being translated to Thai Baht. Even with a 12% increase in liftings, the Cost of Freight and Operation in the second quarter 2007 was THB3,932 million, a reduction of 4% year-on-year. The bunker price continued to pose concern as price moved up substantially starting in late March and was persistently high throughout Q207. Otherwise, other cost items were in line with the improved liftings and increase in number of vessels under owned operation. For the first six months, the Cost of Freight and Operation was down by 3% at THB7,807 million.