Regional Container Lines (RCL), a Thai-based container shipping line, announced a remarkable financial performance for the year ending December 31, 2024, achieving a net profit of THB 9,171 million. This represents a substantial 511% increase compared to the THB 1,502 million profit recorded in 2023.
The exceptional growth was primarily fueled by a 34% surge in freight income, amounting to THB 8,828 million. This increase resulted from a combination of higher shipping volumes and improved average freight rates. Specifically, RCL handled 2,450,000 TEUs (twenty-foot equivalent units), a 12% rise from the previous year. The average freight rate climbed to USD 404 per TEU, up 18% from USD 343 in 2023. While operating costs rose by 10%, RCL also recognized a THB 847 million reversal on vessel impairment, offset by a THB 450 million provision for a dispute.
In the fourth quarter of 2024, RCL reported a net profit of THB 3,318 million, a 121% increase compared to the total net profit of 2023. However, this figure represents a 19% decrease from the previous quarter, attributed to a 10% decline in freight income. This dip was largely due to extended holidays in China, which led to a 17% drop in average freight rates. Despite this, total lifting volumes continued to grow by 11%, supported by effective cost management and strategic fleet optimization. RCL expanded its fleet with five new vessels in 2024, two of which are under long-term charter agreements amidst high market demand, while the other three were deployed for RCL’s operations. This strategic fleet management ensured continuous profitability.
The container shipping industry in 2024 faced challenges, including freight rate volatility, port congestion, and geopolitical uncertainties. RCL proactively addressed these challenges by implementing strategic initiatives to ensure sustainable operations and enhance its business capabilities. These initiatives include expanding services to high-growth markets like the Middle East, the Indian subcontinent, and East Africa and scaling up reefer container services.
2024 was pivotal year for RCL’s fleet development. The company strategically sold older vessels and acquired five technologically advanced, fuel-efficient vessels, with an additional ten vessels currently under construction, demonstrating its commitment to environmental sustainability. Furthermore, by the end of 2024, RCL secured long-term charter agreements for nine vessels, capitalizing on the rising Time Charter Index and robust vessel demand. This secured favorable charter rates, contributing to sustained profitability.
Finally, RCL’s Board of Directors, in meeting No. 1/2025 held on February 21, 2025, proposed a total dividend of THB 2.50 per share for the 2024 operational results. Having already distributed interim dividends of THB 1.00 per share, the remaining THB 1.50 per share dividend is subject to shareholder approval at the Annual General Meeting on April 18, 2025, with payment scheduled for May 16, 2025.
