Hanjin Shipping has continued profitability for the second quarter of 2015, posting a net profit of KRW104.3 billion (USD94 million), reversing its second-quarter 2014 loss of KRW199.7 billion.
The biggest container shipping company in South Korea had already returned to black for the first quarter of 2015 by posting a net profit of KRW22.9 billion.
The net profit for the second quarter showed a 355.5% of growth compared with the previous quarter and Hanjin attributed the success to the appreciation of KRW against USD and the sale of shares in Spanish builders TTI Algeciras.
Hanjin Shipping also reported total sales of KRW1.98 trillion and an operating profit of KRW59.2 billion, a 7.5% and 61.8% decrease respectively from the first quarter.
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“The total sales decreased 6.3% year-on-year but operating profit hiked 147.7% as a result of continuous cost saving efforts,” said the company in a statement.
Container liner division achieved KRW 1.83 trillion of sales, which is 5.4% decrease year-on-year. The result was influenced by drastic drop of freight rates, Hanjin explained.
It added, “The division’s operating profit jumped by 66.9% to KRW62.6 billion year-on-year, driven by rationalised service lanes and lower bunker costs.”
Meanwhile, the bulk business division recorded an operating loss of KRW22.8 billion – which fell 8.4% year-on-year – mainly caused by China’s reduced import of coal and other seasonal effects. Other businesses, such as the terminal division, experienced a substantial upturn in operating profit, climbing 71.7% to KRW19.4 billion.
For the second half of the year, Hanjin predicted that, “Trans-Pacific 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.”
Hanjin concluded that it would continue to promote various cost-saving measures while strengthening sales power to secure profitability.