Hanjin Shipping suffers operating loss in 1Q

Hanjin Shipping (Chairwoman & CEO Eun-Young Choi) announced the 2012 1Q business results with total revenue of KRW 2.2641 trillion and an operating loss of KRW 218.4 billion.

A Hanjin Shipping spokesperson said, “Although the recovery of the US and Euro zone economy has dragged on, total container volumes increased by 7.4% compared with the same period of last year. However the financial figures were disappointing due to a plunge in freight rates and soaring fuel costs”.

The container division saw a downturn of KRW 237.8 billion in operating losses despite vessel capacities and deficit trades being reduced. On the other hand, the bulk division recorded KRW 10.3 billion of operating profit, climbing by 27.2% against last year.

Regarding the first quarter, Hanjin Shipping commented, “We'll do our best to turn back in black in the container division through additional GRI and the commencement of PSS (peak season surcharge). Plus, we are cutting costs to deploy high efficiency mega vessels into major trades.”

He added, “Meanwhile we see a positive outlook in the bulk division. Because the steel industry in China will rebound, the demand for coal will grow due to increased electricity used in summer.” < 김보람 기자 brkim@ksg.co.kr >