The South Korean shipping company Hyundai Merchant Marine (HMM) has reported its net income for the second quarter of 2016 at KRW 215.9 billion (USD 195.2 million), compared to a net loss of KRW 165.7 billion seen in the same quarter a year earlier, due to the sale of assets and cash injections to maintain liquidity.
However, the company still saw a net loss at the end of the first half of 2016, which stood at KRW 60.1 billion, against a loss of KRW 210.2 billion recorded in the corresponding period of 2015.
HMM’s operating loss widened in the quarter to KRW 254.3 billion, while the half-yearly operating loss reached KRW 416.9 billion, against an operating loss of KRW 68.3 billion and KRW 68.2 billion reported in the corresponding periods in 2015, respectively.
The shipping firm completed all conditions set out in the voluntary agreement with creditors from March 2016 and in accordance with the completion of such preconditions, “the planned debt-for-equity swap by creditors will be executed as planned,” the company earlier said.
In July 2016, HMM signed a Memorandum of Understanding (MOU) to join the 2M Vessel Sharing Agreement (2M VSA) starting from April 2017, upon finalizing negotiations and approval procedures in each country.
Signed between HMM and the 2M carriers, Maersk Line and Mediterranean Shipping Company (MSC), the MOU is a binding agreement in regards to HMM’s entry to the 2M VSA.
The company signed the MOU following agreements with bond-holders to adjust debt and shipowners to adjust charter-hire.
World Maritime News Staff