Korean liners confident on profit韩国班轮企业对利润增长持乐观态度
Despite sharply reduced operating profit and net loss for the first quarter this year, Hyundai Merchant Marine (HMM) and Hanjin Shipping Co appear to be confident on business prospects for the rest of the year.
HMM operating profit for Q1 2007 was down 40.9% to KRW57.9 billion (USD62.1 million), while at the net level losses of KRW9 billion (USD9.7 million) were posted. This compared with net profit of KRW137.7 billion for the first three months of 2006.
The company revenue also slipped, falling from KRW1.2 trillion in 2006 to KRW1.1 trillion (USD1.2 billion) in the opening quarter of 2007.
HMM said that compared with the operating loss of KRW6.2 billion in Q4 2006, the result for the first period of 2007 was a marked improvement. Similarly at the net profit level losses were halved compared with the final quarter of 2006 (- KRW18.6 billion).
HMM attributed the improvement in operating profit to a partial recovery in container freight rates on the Far East/Europe route and stable performances (profits) in its LNG and bulk carrier divisions.
losses recorded for the first quarter this year,?the company said, Tere largely related to the appreciation of the Korean won against the US dollar?
Mr. Noh Jung Ik, president & CEO of HMM, said in a letter to shareholders that he expected results for the rest of the year to be better than those in the first quarter thanks to container freight rate recovery measures and the group抯 fleet expansion programme.
Compatriot carrier Hanjin also experienced a sharp reduction in its profitability in Q1 2007. While operating profit was reduced 74.8% to KRW7.8 billion (USD8.4 million) compared with KRW30.9 billion in the corresponding period of 2006, at the net level losses of KRW46.5 billion (USD49.8 million) were posted.
In Q1 2006,
Hanjin singled out the appreciation of the Korean currency against the US dollar and the 20% increase in charter rates it was paying for tonnage as the main reasons for its falling into loss.
One positive factor in its first quarter performance was it container carryings, which rose more than 22.2% to 929,943TEU.
Like HMM, Hanjin is confident about the rest of the year. A spokesman told CI eXpress that expected freight rate recovery programmes together with more container cargoes will give good results to Hanjin from the second quarter onwards.
And in a long-term review, Hanjin announced that it will achieve revenue of KRW25 trillion (USD26.8 billion) and operating profit of KRW2 trillion (USD2.1 billion) in 2017.
The Hanjin spokesman alluded to the balanced development of container ships, dry bulk carriers, terminal, logistic related new business, third party logistics and ship repair business as the means of achieving this goal.