Hanjin Shipping stays in the red with a loss of $386m

South Korea’s Hanjin Shipping remained in the red in 2014 with a net loss of KRW423.3bn ($386.4m) but it made an operating profit of KRW82.1bn.

Hanjin Shipping was in a far worse-off situation in the financial year 2013 when it sat on a net loss of KRW680.2bn and an operating loss of KRW412.3bn.

Revenue last year decreased 10.3% year-on-year to KRW8.65trn due to smaller contributions from its fleet as inefficient vessels were disposed of.

The shipowner’s container division generated an operating profit of KRW143.5bn as against an operating loss of KRW316.9bn in the previous year.

Its dry bulk division remained weak with an operating loss of KRW164.7bn last year compared to the slightly smaller loss of KRW160.5bn in 2013.

Hanjin Shipping commented that “with continued growth of the US market and positive influence of ECB’s quantitative easing, container shipping market is likely to stabilise.”

The company added that “cost structure improvement measures have secured our cost competitiveness and together with falling oil prices, it is likely that our figures improve continuously.”



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