South Korean shipping company Pan Ocean witnessed almost a double net profit in the second quarter of 2018, compared to the same period a year earlier, driven by a recovery in freight rates.
The company’s net profit jumped to KRW 37.3 billion (USD 33 million) from KRW 20 billion reported in the same quarter a year earlier.
The result marked a 86.5 percent change, as Pan Ocean delivered its 18th consecutive quarter of profitable sustainability, maintaining the growth trend.
Second quarter revenue was up by 7.3 percent to KRW 678.8 billion, compared to KRW 632.5 billion seen in the same period in 2017.
In addition, quarter-on-quarter earnings were 20 percent up for sales, while operating and net profit increased by 13.9 and 2.5 percent, respectively. Revenues rose 17.9 percent in the main bulk cargo division and 17.3 percent in the container division, which ran through the rationalization of routes. In particular, sales in the newly launched grain division jumped by 66.7 percent.
Pan Ocean explained that the BDI market was in the upward trend and it was based on efforts to strengthen market responsiveness such as risk management and construction of an advanced portfolio.
“We will continue to pursue stable growth through preemptive measures such as market forecasts and risk management, while continuing our efforts to secure international competitiveness and expand our business base in new grain business,” a Pan Ocean official said.