Sinokor escapes from deficit though profit declined in 2011

Sinokor Merchant Marine noted in its annual reports for 2011 that the company managed to remain on a 'not bad' level.

Sinokor said its operating profit was KRW 48.2 billion but had decreased by 46.4% from KRW 90 billion in 2010. The Korean-flagged carrier also made KRW 40.6 billion last year in a net profit, falling by 4.1% from KRW 42.3 billion in the same period of 2010.

The company evaluated that though its operating profit fell sharply, the company would avoid any deficit at a time when most other carriers are in the red.

Revenue grew to KRW 745 billion from KRW 723.6 billion compared with 2010, up by 3%. The carrier saw its container shipping rate income increased by 3.7% to KRW 566.7 billion, but its vessel charter income decreased by 12.9% to KRW 131.4 billion.

The company cited soaring operating costs - its net operating cost includes oil price increases to KRW 670.3 billion, up by 11.3% from KRW 602.1 billion. This was a major factor in its decreased operating profit.

A representative of Sinokor Merchant Marine explained, "There are so many obstructions blocking our economic growth - the global economic depression, soaring bunker prices, the revaluation of the Japanese Yen. Plus excessive competition has intensified between shipping companies in South East Asia trades."

He added, "As the case stands, we have plans to improve our earnings and expenses through vessel slow steaming, making alliances with other carriers, decreasing freight spaces, etc." < 김보람 기자 brkim@ksg.co.kr >