Significant reductions in foreign exchange losses allowed STX Pan Ocean to return to profitability in its second quarter, reversing a loss in the same period a year earlier, reported Straits Times.
STX is a South Korean shipping company involved in the marine transportation business. It provides bulk cargo carrier, car carriage, container and tanker services.
Net foreign exchange losses fell 84.7 per cent, or US$17.1 million, which boosted second-quarter profits of $20.4 million, reversing a net loss of $4.03 million in the same period last year.
STX's return to profitability came despite a decrease of 8.7 per cent in second-quarter revenue to $1.4 billion from the same period last year.
The group's second-quarter return to the black was also not sufficient to avert a first-half net loss of $28.1 million, reversing a net profit of $16.1 million in the first half of last year.
The net loss is largely attributable to a 99.5 per cent decrease in gross profits to $394,000.
As STX operates a business with a low profit margin, the slight 2.9 per cent slide in first-half revenue and a marginal increase in cost of sales of 0.2 per cent resulted in the large fall in gross profits.
The poorer first-half revenue performance was due to a 20 per cent, or $173 million, decline in sales from STX's short notice shipping service, which is one of the group's main business segments.
This offset revenue increases in the group's other main business segments, including a one per cent increase in large bulk service and a 10 per cent increase in breakbulk liner service.
For the six months ended June 30, STX reported a loss per share of 14 cents, against earnings per share of eight cents in the first half of last year.
STX is a South Korean shipping company involved in the marine transportation business. It provides bulk cargo carrier, car carriage, container and tanker services.
Net foreign exchange losses fell 84.7 per cent, or US$17.1 million, which boosted second-quarter profits of $20.4 million, reversing a net loss of $4.03 million in the same period last year.
STX's return to profitability came despite a decrease of 8.7 per cent in second-quarter revenue to $1.4 billion from the same period last year.
The group's second-quarter return to the black was also not sufficient to avert a first-half net loss of $28.1 million, reversing a net profit of $16.1 million in the first half of last year.
The net loss is largely attributable to a 99.5 per cent decrease in gross profits to $394,000.
As STX operates a business with a low profit margin, the slight 2.9 per cent slide in first-half revenue and a marginal increase in cost of sales of 0.2 per cent resulted in the large fall in gross profits.
The poorer first-half revenue performance was due to a 20 per cent, or $173 million, decline in sales from STX's short notice shipping service, which is one of the group's main business segments.
This offset revenue increases in the group's other main business segments, including a one per cent increase in large bulk service and a 10 per cent increase in breakbulk liner service.
For the six months ended June 30, STX reported a loss per share of 14 cents, against earnings per share of eight cents in the first half of last year.