The Korean ocean carrier saw net profits skyrocket year-over-year in the second quarter thanks to the depreciation of the South Korean Won against the U.S. dollar and the sale of Total Terminal International Algeciras’ stocks.
Ocean carrier Hanjin Shipping reported a much improved second quarter this year with a net profit of 104.3 billion South Korean Won (KRW) (U.S. $94 million), up from the previous year’s second quarter, in which it reported a net loss of 199.7 billion KRW.
Hanjin attributed the positive results to the depreciation of the KRW against the U.S. dollar and the sale of Total Terminal International Algeciras’ shares.
The Korean carrier reported an operating profit of 59.2 billion KRW in the second quarter, up from the prior year’s second quarter of 23.9 billion KRW.
Operating profits in the container liner division skyrocketed from 37.5 billion KRW in the second quarter of 2014 to 62.6 billion KRW in the second quarter of 2015, the result of rationalized service lanes and lower bunker costs.
The bulk business division, hindered by China’s reduced import of coal and other seasonal effects, reported an operating loss of 22.8 billion KRW, slightly lower than last year’s second quarter loss of 24.9 billion KRW.
Looking forward to the second half of 2015, Hanjin said, “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 U.S. market. As for Asia-Europe trade, oversupply situation is expected to gradually improve hence freight rate level will also stabilize.”
Hanjin Shipping reports strong Q2 results
