Americas News
Bunker Fuel Price Increase Cited for Matson's Weaker 2016 Q4 Results
U.S.-based carrier Matson, Inc. (Matson) says its 4Q16 results were negatively impacted by a surge in bunker fuel prices, as well as the timing of fuel surcharge collections.
"Matson's core businesses performed largely as expected in the fourth quarter; however, the quarter was negatively impacted by the increase in bunker fuel prices from mid-November through December," said Matt Cox, Matson's President and CEO.
"While our full year 2016 financial results failed to match the exceptional results achieved in 2015, when we benefitted from record rates in our expedited China service and volume gains in Hawaii as our primary competitor suffered operational difficulties, 2016 was a year in which we made critical investments for our future."
Despite the negative impacts from higher bunker prices, Matson reports that consolidated revenue achieved during 2016's Q4 was $519.3 million, compared to $494.8 million during the same period in 2015.
For the full year 2016, Matson achieved a net income of $80.5 million, down from $103.0 million in 2015.
"For 2017, we expect to see modest improvement in each of our core businesses with the exception of Guam where we expect further competitive losses due to the launch of a competitor's second ship. As a result, we expect Matson's 2017 operating income to be lower than it was in 2016," concluded Cox.
