Hanjin Shipping, South Korea's biggest shipping line by sales, swung to a net profit in the second quarter from a year earlier as the economic revival during the period jump-started demand in the shipping industry, reported Dow Jones Newswires.
However, renewed economic uncertainties and industry oversupply have cast a pall on the company's outlook for the second half.
"Increased delivery volume and improving shipping charges resulted in the quarterly turnaround, but it fell short of recovering to the pre-2008 crisis level," the company said.
A rights issue worth US$214.33 million and the sale of its stake worth $171.46 million in the Busan port terminal in May helped cut debt ratio.
In the second quarter, Hanjin's debt-to-equity ratio fell to 272 percent from the previous quarter's 346.3 percent.
Hanjin, which gets about 80 percent of its sales from its container business, shifted to a net profit of $149 million for the three months ended June 30 from a net loss of $357.93 million a year earlier.
It also swung to an operating profit of $145.49 million from an operating loss of $246 million.
The company said in the statement that it expects higher demand in the container business, but cited concerns over the increased supply of new large vessels to shipping companies and economic uncertainties in the second half.
However, renewed economic uncertainties and industry oversupply have cast a pall on the company's outlook for the second half.
"Increased delivery volume and improving shipping charges resulted in the quarterly turnaround, but it fell short of recovering to the pre-2008 crisis level," the company said.
A rights issue worth US$214.33 million and the sale of its stake worth $171.46 million in the Busan port terminal in May helped cut debt ratio.
In the second quarter, Hanjin's debt-to-equity ratio fell to 272 percent from the previous quarter's 346.3 percent.
Hanjin, which gets about 80 percent of its sales from its container business, shifted to a net profit of $149 million for the three months ended June 30 from a net loss of $357.93 million a year earlier.
It also swung to an operating profit of $145.49 million from an operating loss of $246 million.
The company said in the statement that it expects higher demand in the container business, but cited concerns over the increased supply of new large vessels to shipping companies and economic uncertainties in the second half.