Heung-A back in black

Heung-A Shipping's " Heung-A Dragon "

Korean containership owner Heung-A Shipping has erased the first quarter’s losses as its operating profits recovered in the second quarter.

The company said it made net profit of KRW 9 billion against a deficit of KRW 4.7 billion the previous quarter. Operating profits improved to KRW 13.5 billion, against KRW -3.4 billion in the first quarter.

The carrier was also in the red in 2Q 2011 - Heung-A recorded KRW -3.2 billion and KRW -8.6 billion each on its operating profit and net profit, respectively, a year ago. The company's revenue rose to KRW 183.4 billion, compared to KRW 166.5 billion in the second quarter of 2011.

For revenue by business unit in 2Q 2012, Heung-A Shipping showed KRW 159.9 billion in container shipping, soaring 32.6% from KRW 120.5 billion in the same period of 2011.

But the carrier saw the revenue in their tanker shipping decrease to KRW 23 billion from KRW 27.4 billion last year.

Heung-A Shipping also performed well in the first half 2012  with revenue of KRW 344.6 billion, delivering an operating profit of KRW 10 billion and net profit of KRW 4.3 billion.

Revenue in the first half increased by 9.1% from KRW 315.9 billion last year. Operating profit and net profit turned into black from KRW -2.9 billion and KRW -12.5 billion in 1H 2011.

A representative from Heung-A Shipping noted, "We achieved healthy figures owing to increases in cargo traffic, and we succeeded in GRI in South-East Aisa." He added, "However, the Euro Zone's depression and Middle East's political unrest are both remaining dismal with no improvement, which will only add to the uncertainty of the current economic conditions." < 김보람 기자 brkim@ksg.co.kr >