News Content

Hanjin posts US$94 million quarterly profit, but sales sink 6.3pc

KOREA's Hanjin Shipping posted a second quarter net profit of KRW104.3 billion (US$94 million), reversing out of last year's quarterly loss of KRW199.7 billion. But this year's second quarter revenue was down 6.3 per cent to KRW1.98 trillion year on year.

The biggest container shipping company in South Korea had already returned to black for the first quarter, posting a net profit of KRW22.9 billion.

Hanjin attributed the success to the appreciation of won against the dollar and the sale of shares in Spanish builders TTI Algeciras.

The container division achieved KRW1.83 trillion of sales, which is 5.4 per cent decrease year on year, a decline attributed to a drastic drop of freight rates.

"Operating profit jumped by 66.9 per cent to KRW62.6 billion year on year, driven by rationalised service lanes and lower bunker costs," said Hanjin.

Meanwhile, the bulk business division recorded an operating loss of KRW22.8 billion - which fell 8.4 per cent year on year because of China's reduced demand.

But other businesses, such as the terminal division, experienced a substantial upturn in operating profit, climbing 71.7 per cent to KRW19.4 billion.

For the second half, Hanjin predicts that the "transpacific trade is likely to grow in terms of both freight rate and cargo volume as the annual peak season approaches along with the potential recovery of the US market. As for the Asia-Europe trade, the oversupply situation is expected to gradually improve, hence freight rate level will also stabilise."