Hanjin records profit in Q3

The Korean shipping giant moved fewer containers than last year, but benefited from rate restoration and cost cutting.

   Hanjin Shipping said it had a profit of 39.8 billion Korean won ($59 million) in the third quarter, compared to a loss of 317.7 billion won in the same period last year.
   Revenue was 2.148 trillion won ($2.09 billion), 15-percent less than the 2.531 trillion won collected in the same period a year earlier.
   The company’s container business had an operating profit of 77.4 billion won in the third quarter this year, a turnaround from a 47.8 billion won loss in the same 2013 period. Revenue in the container business was 1.957 trillion won, 12-percent less than the 2.228 trillion won in the third quarter of 2013.
   The company moved 1,139,728 TEUs in the third quarter of this year, 7.6-percent fewer than the 1,233,642 TEUs moved in the third quarter of last year.
   “Cut-down in transport volume derived from sales of old vessels has resulted drop in total sales,” the company said.
   Operating profit of 60.7 billion won in the third quarter, compared to a loss of 69.5 million won in the third quarter of 2013, reflected “high seasonality of container market.”
   It said the operating profit in the container business came about “through active rate restoration efforts on Trans-Pacific and Asia-Europe trades as well as continuous reduction efforts.”
   The company’s bulk division had an operating loss “due to downturn in China’s import of coal and low market.”
   In the fourth quarter, Hanjin said “the U.S. economy is expected to show continued growth due to its reduced energy cost followed by production of shale gas. Thus rate recovery for transpacific trades seems possible, together with stabilization of supply and demand for the U.S. trades caused by its limited expansion due to saturated port facilities.”
   It added that the “continuous trend of falling global oil price is expected to lead more favorable conditions for shipping industry” and said Hanjin will continue cost saving efforts and “reinforcement of sales power.”