Taiwan-based shipping giant Evergreen Marine has reported its first quarterly profit in nearly two years, leading the firm's stock to climb to it highest point since June, 2008.
The shipping line reported second quarter net profit of $129 million, compared to a loss of $62 million in second quarter 2009. The second quarter profits easily beat Wall Street estimates of $72 million.
Peter Tzeng, a Taipei-based analyst at Polaris Securities Co., told Bloomberg News, “It’s too good to be true, but it’s true. Demand for container shipping has returned to the levels before the global financial crisis.”
During Monday trading on the Taiwan Stock Exchange, Evergreen's stock jumped more than 2 percent on the news, climbing to its highest point since June 10, 2008.
As part of a 100-vessel plan, Evergreen Group, the parent of Evergreen Marine, ordered 10 new vessels last month.
Singapore-based Neptune Orient Lines, the parent of APL, also reported an earnings turnaround due to rising cargo volumes and higher freight rates.
NOL reported second quarter profit of $100 million, up from a $146.7 million loss in the second quarter of 2009.
The line also announced it had completed orders for two new 10,700-TEU vessels as part of a 12-vessel order with Daewoo Shipbuilding & Marine Engineering.
