Korea’s shipping company Pan Ocean recorded USD 83 million in profit for 2016, more than doubling its profit posted a year earlier that came at USD 34 million.
The profit surge was recorded despite poor dry bulk market. However, the company expects the market to revive as more bulkers are projected to be phased out by demolition this year.
The group’s operating profit for the year was USD 145 million as compared to the operating profit of USD 196 million in the corresponding period of preceding financial year.
In line with the amended rehabilitation plan, Pan Ocean said that it has recognized the profit and loss from debt restructuring including debt-equity swap. It recorded the gain of USD 83 million in 2016 and the loss of USD 115 million in 2015.
The company was acquired in 2015 by a consortium led by poultry processor Harim and Korean private equity group JKL Partners that assigned USD 968 million for the acquisition of the debt-laden bulk shipping company.
Losses on impairment of vessels, property and equipment stood at USD 115 million in 2016.
The group’s sales reached USD 1,617 million, an increase of 0.7% compared to the same period in 2015.
Earlier this year Pan Ocean revealed an order for five open hatch wood chip carriers intended for the company’s long-term shipping deal with Brazil-based pulp and paper firm Fibria.
The contract is valued at USD 146.6 million. As informed, the construction of the new ships is scheduled to start in late December 2018 and it is expected to be finalized in September 2020.