Matson's first quarter profit fell 167 per cent year on year to US$3.4 million, drawn on revenues of $392.5 million, down 0.56 per cent.
The Jones Act carrier said the weaker revenue was caused primarily by lower fuel surcharge revenue, falling container volume in Hawaii and lower China freight rates.
This was partly offset by freight rate increases and cargo-mix improvements in Hawaii and increased volume in the company's Micronesia and South Pacific trade, reported Lloyd's List.
"Container volume decreased 2.9 per cent due primarily to lower eastbound freight; China volume decreased 3.5 per cent as a result of an additional sailing during the first quarter 2013.
Guam volume increased 3.4 per cent due to the timing of select shipments and Micronesia/South Pacific volume increased 33.3 per cent, reflecting a full quarter of operations," the shipping line.
President and chief executive Matt Cox said its businesses performed as anticipated, driven by sustained demand in core markets and continued freight rate strength.
"While the timing of fuel surcharge collections significantly impacted financial results during this quarter, our businesses are running well and continue to generate substantial cashflow," he said.
"Coupled with our recent debt financing, we have ample capacity to fund our newbuild vessel commitments, pursue growth opportunities and maintain a healthy dividend," said Mr Cox.
"We continue to be encouraged by our prospects in Hawaii and in a strengthening broader economy that will positively shape volume in our Jones Act trades and in logistics."
Looking to the year ahead, the company expects its ocean transportation operating income to be near or slightly above levels achieved in 2013, as long as there are no further costs related to the molasses incident that so far this year has cost the company $1 million in legal expenses, according to Shipping Gazette.
The Jones Act carrier said the weaker revenue was caused primarily by lower fuel surcharge revenue, falling container volume in Hawaii and lower China freight rates.
This was partly offset by freight rate increases and cargo-mix improvements in Hawaii and increased volume in the company's Micronesia and South Pacific trade, reported Lloyd's List.
"Container volume decreased 2.9 per cent due primarily to lower eastbound freight; China volume decreased 3.5 per cent as a result of an additional sailing during the first quarter 2013.
Guam volume increased 3.4 per cent due to the timing of select shipments and Micronesia/South Pacific volume increased 33.3 per cent, reflecting a full quarter of operations," the shipping line.
President and chief executive Matt Cox said its businesses performed as anticipated, driven by sustained demand in core markets and continued freight rate strength.
"While the timing of fuel surcharge collections significantly impacted financial results during this quarter, our businesses are running well and continue to generate substantial cashflow," he said.
"Coupled with our recent debt financing, we have ample capacity to fund our newbuild vessel commitments, pursue growth opportunities and maintain a healthy dividend," said Mr Cox.
"We continue to be encouraged by our prospects in Hawaii and in a strengthening broader economy that will positively shape volume in our Jones Act trades and in logistics."
Looking to the year ahead, the company expects its ocean transportation operating income to be near or slightly above levels achieved in 2013, as long as there are no further costs related to the molasses incident that so far this year has cost the company $1 million in legal expenses, according to Shipping Gazette.