Korean shipping line Hanjin Shipping said the weak Korean won against the U.S. dollar and record fuel costs contributed to a first quarter net loss of Won30.4 billion ($30 million), which actually represents an improvement against a loss of Won46.6 billion in the same period last year.
The Seoul-based carriers quarterly earnings before interest, and taxes (EBIT) soared to Won104.2 billion ($106 million), compared to Won7.8 billion a year earlier. EBIT from container shipping recovered to Won29.4 billion ($30 million), from a loss of Won22.4 billion, while bulk EBIT gained a massive 147.7 percent to Won74.8 billion ($76 million).
Total sales improved 29.8 percent to Won1.99 trillion ($2.02 billion) with container revenue up 16.8 percent to Won1.49 trillion ($1.51 billion) and bulk shipping sales growing 95.2 percent to Won499 billion ($504 million).
Hanjins container volumes in the three months declined 8.9 percent to 846,731 TEUs.
Despite the slow recovery of the transpacific trade after the U.S. recession and the augmented fuel cost resulting from the hike in oil prices, the container line division managed to recover its operating profit thanks to the favorable market conditions in the Asia/Europe trade as well as the increase in general freight rates, Hanjin said in a statement.
We are concentrating all our efforts on achieving our targets in 2008. We are planning on applying floating bunker charges to minimize the loss caused by the rapid changes in global oil prices. Furthermore, in order to reduce our vessel operating cost while coping with the market situation, we will operate our fleet as flexibly as possible and continue the rationalization of our services.
Meanwhile, as part of its bulk business expansion plan, Hanjin today ordered two 320,000-deadweight ton Very Large Crude Carriers (VLCCs) from an unnamed yard. The company has about 20 middle to long-term chartered bulk vessels to be delivered this year, and said it will increase its bulk fleet from some 100 ships to about 250 vessels in five years.
Hanjin added it would nearly double its container vessel fleet from the current 350,000 TEUs. Last February, it concluded a contract for chartering a total of nine 13,000-TEU class ships for more than 12 years.
Other strategies designed to help it achieve its long-term Vision 2017 target total sales of Won25 trillion, EBIT of Won2 trillion and corporate value of Won15 trillion by the year 2017 include expansion of its third-party logistics unit, more dedicated container terminals, and the opening of its first ship repair yard in China during the second half of this year.
The Seoul-based carriers quarterly earnings before interest, and taxes (EBIT) soared to Won104.2 billion ($106 million), compared to Won7.8 billion a year earlier. EBIT from container shipping recovered to Won29.4 billion ($30 million), from a loss of Won22.4 billion, while bulk EBIT gained a massive 147.7 percent to Won74.8 billion ($76 million).
Total sales improved 29.8 percent to Won1.99 trillion ($2.02 billion) with container revenue up 16.8 percent to Won1.49 trillion ($1.51 billion) and bulk shipping sales growing 95.2 percent to Won499 billion ($504 million).
Hanjins container volumes in the three months declined 8.9 percent to 846,731 TEUs.
Despite the slow recovery of the transpacific trade after the U.S. recession and the augmented fuel cost resulting from the hike in oil prices, the container line division managed to recover its operating profit thanks to the favorable market conditions in the Asia/Europe trade as well as the increase in general freight rates, Hanjin said in a statement.
We are concentrating all our efforts on achieving our targets in 2008. We are planning on applying floating bunker charges to minimize the loss caused by the rapid changes in global oil prices. Furthermore, in order to reduce our vessel operating cost while coping with the market situation, we will operate our fleet as flexibly as possible and continue the rationalization of our services.
Meanwhile, as part of its bulk business expansion plan, Hanjin today ordered two 320,000-deadweight ton Very Large Crude Carriers (VLCCs) from an unnamed yard. The company has about 20 middle to long-term chartered bulk vessels to be delivered this year, and said it will increase its bulk fleet from some 100 ships to about 250 vessels in five years.
Hanjin added it would nearly double its container vessel fleet from the current 350,000 TEUs. Last February, it concluded a contract for chartering a total of nine 13,000-TEU class ships for more than 12 years.
Other strategies designed to help it achieve its long-term Vision 2017 target total sales of Won25 trillion, EBIT of Won2 trillion and corporate value of Won15 trillion by the year 2017 include expansion of its third-party logistics unit, more dedicated container terminals, and the opening of its first ship repair yard in China during the second half of this year.