Singapore-listed shipowner Pan Ocean plunged to a loss of USD157 million for the second quarter ending 30 June 2015 from a profit of USD323.9 million in the same period a year ago.
Its revenue declined 0.1% year-on-year to USD378.7 million, while its gross profit was USD58.3 million, down 17.7%.
The company’s other non-operating activities, which had recorded a profit of USD300 million in the second quarter of 2014, had turned to a loss of USD117 million in the same period in 2015.
According to the company’s filing to the Singapore Exchange, the loss is mainly attributed to the obligated repayment of rehabilitation liabilities in full without adjusting discounted cash flow, which has been reflected throughout the year.
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In June 2013 Pan Ocean had applied to the courts in Seoul to exit a two-year debt rehabilitation process. In June 2015 the company was bought out by Harim Group and JKL Consortium for KRW1.01 trillion (USD857 million).
Pan Ocean believes the dry bulk market will recover in the second half of 2015 despite economic slowdown in China.
“On the whole, the total dry bulk seaborne trade in 2015 will edge up to 4.63 billion tonnes, up approximately 1.7%, due to slower demand in China. However, thanks to the increase in iron ore shipment in the second half of 2015, especially from Brazil, and relieved over-supply resulting from surging demolition and slowdown in ordering/delivering, we believe there is a possibility of the dry bulk market recovery in the second half of 2015,” said Pan Ocean in its filing.