Regional Container Lines Public Company Limited (the “Company” or “RCL”) is pleased to inform that the Company achieved a net profit of THB 9,171 million for the year ended December 31, 2024, representing a significant increase of 511% compared to its net profit of THB 1,502 in 2023. This growth was primarily driven by an increase in freight income of THB 8,828 million, or 34%, mainly due to a substantial improvement in both total lifting and average freight rates. In 2024, the total lifting was registered at 2,450,000 TEU, an increase of 263,631 TEU or 12%, while the cost of operation rose by 10%. The average freight rates improved, reaching USD 404 per TEU in 2024, reflecting an 18% increase compared to USD 343 in 2023. Additionally, in 2024 the Company recognized revenue from the reversal on impairment of vessels amounting to THB 847 million, though at the same time recorded a provision for dispute of THB 450 million.
In the fourth quarter of 2024, the Company reported a net profit of THB 3,318 million, which was 121% higher than the total net profit for 2023. However, it declined by THB 773 million or 19% compared to the previous quarter due to a 10% decrease in freight income. This decline resulted from long holidays in China during the final quarter of the year, leading to a 17% drop in the average freight rates. Nonetheless, total lifting continued to increase by 11% driven by efficient cost management and strategic fleet management. Notably, 5 new vessels have been added to the fleet in 2024 and 2 of which are currently engaged under long-term charter agreements amid a market shortage of vessels and high demand. Meanwhile, the other 3 new vessels were deployed by the Company for own operations to accommodate the increasing and diverse needs of customers. As a result, the Company is able to generate continuous profits from its fleet utilization.
In 2024, several factors impact the container shipping industry, including fluctuations in freight rates, port congestion, and global geopolitics that influence economic conditions and policy trends. However, the Company has implemented various strategic initiatives and measures aimed at ensuring sustainable business operations to cope with market volatility and enhancing its business capabilities to meet future customer demands. These include expanding its services into highpotential markets such as the Middle East, the Indian subcontinent, and East Africa, as well as expanding its reefer container services, which are anticipated to draw in significant growth.
Furthermore, 2024 marked a significant milestone for the Company in fleet development. This includes the sale of old vessels in timely opportunities and the acquisition of 5 new vessels as previously mentioned, technologically advanced vessels that support alternative energy sources, along with an additional 10 vessels currently under construction.
These efforts reflect the Company’s commitment to environmental policies. Additionally, by the end of 2024, the Company has secured long-term charter agreements for 9 vessels. This aligns with the upward trend of the Time Charter Index, which has been rising since early September 2024, and the increasing demand for vessels in the container shipping industry. As a result, the Company has been able to secure long-term charter agreements at favourable charter rates, which remain at high levels
Lastly, the Company is pleased to announce that during Meeting No, 1/2025 of the Board of Directors held on February 21, 2025, a resolution was passed to propose to the Shareholders’ Meeting, the approval of dividend for the year 2024 operational results, aggregating THB 2.50 per share. The Company had already distributed two interim dividend payments during the year 2024 totalling THB 1.00 per share. Therefore, the remaining dividend of THB 1.50 per share is subject to approval by the shareholders at the Shareholders’ Meeting on April 18, 2025. Upon approval, the dividend payment shall be made on May 16, 2025.