KSS Line sees revenue up but profits down

KSS Line, a Korean carrier, announced its first quarter operating profit dramatically dropped by 89.7% to KRW 2.4 billion from KRW 23.5 billion compared with the same period last year.

The company also faced huge losses with its net profit reducing 64.0% to KRW 6.4 billion from KRW 17.8 billion against 2011 1Q.

One sad consolation, however, KSS Line showed KRW 26.2 billion in revenue, increasing by 36.4% from KRW 19.2 billion of last 1Q's figure. The Seoul-flagged carrier explained its revenue grew by double-digits because the company deployed new vessels.

In addition, if the KRW 14.9 billion of sales margins for LNG carriers, which occurred in the first quarter last year, is ruled out, the carrier will record a net profit increase of 114.9% compared with same period last year.

A representative of KSS Line said, "We expect the financial results will be better for 2Q as the freight rate of LPG vessels has sharply increased." < 김보람 기자 brkim@ksg.co.kr >