[041114.EN.SEA] Hanjin Erases Loss With US$59 Million Q3 Profit Despite 15pc Fall in Revenue

KOREA's Hanjin Shipping posted a KRW39.8 billion (US$59 million) third quarter profit drawn on 15 per cent less revenue of KRW2.14 trillion while erasing a year-on-year KRWR317.7 billion quarterly loss.

Hanjin's container business posted an operating profit of KRW77.4 billion in the third quarter this year, a turnaround from the KRW47.8 billion loss sustained in last year's third quarter. This despite a 12 per cent fall in revenue to KRW1.957 trillion.

Hanjin lifted 1,139,728 TEU in the third quarter, 7.6 per cent fewer than the corresponding quarter in 2013.

The company reported an operating profit of KRW60.7 billion in the third quarter, compared to a year-on-year loss of KRW69.5 million in 2013.

Hanjin said the operating profit in the container business came about "through active rate restoration efforts on transpacific and Asia-Europe trades as well as continuous cost reduction efforts".

The bulk division suffered an operating loss "due to downturn in China's imports of coal and low market", the company said.

Outlook for the fourth quarter, was positive with Hanjin saying "the US 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 stabilisation of supply and demand for the US trades caused by its limited expansion due to saturated port facilities," said the company statement.

It added that the "continuous trend of falling global oil prices is expected to lead to more favourable conditions for shipping industry".

Source : HKSG.