Hyundai Merchant Marine has posted its first quarterly operating profit since 2010.
On 15 May, HMM, South Korea’s second biggest shipping company, said it had a KRW4.2 billion (USD3.86 million) operating profit for 1Q15.
Operating profit refers to the earnings from the company’s core business and excludes earnings from asset sales.
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The company, which has spent the past two years raising funds to avert a credit crunch, remained in the red, with a KRW44.5 billion net loss for 1Q15.
However, it was an improvement from the KRW82.8 billion loss for 1Q14.
HMM said in a press statement, “Despite the first quarter being traditionally a low season for container shipping, our profitability improved due to efforts at cost savings and the drop in fuel oil prices.”
It said its parent company, Hyundai Group, was close to securing KRW3.3 trillion in a pre-emptive measure to avoid a liquidity crisis. This was done through the sale of HMM’s LNG shipping division and Hyundai Group’s stakes in Hyundai Logistics and Hyundai Securities.
The company is now looking to sell its dry bulk shipping business to focus on container shipping.
HMM said, “We’ve secured the liquidity to complete our self-rehabilitation smoothly and expect to reduce our debt.”