Hanjin Shipping Co, South Korea's largest shipping line, slumped to a third-quarter loss because of a weaker won, higher fuel costs and waning demand. The company plunged 15 per cent in Seoul trading.
The 283.7 billion won (S$319.3 million) loss compares with a profit of 112 billion won a year earlier, the Seoul-based shipping line said in a regulatory filing yesterday. Sales rose 39 per cent to 2.56 trillion won.
The shipping line's container unit reported an operating loss after a 'sharp fall' in rates on Asia-Europe routes, the company said in an e-mailed statement.
Like STX Pan Ocean Co and Hyundai Merchant Marine Co, Hanjin also suffered from the won's 13 per cent depreciation in the quarter, which raised the value of its dollar-denominated debt, and from a 75 per cent jump in fuel prices.
'The drop in the won hurt the bottom line,' said Kang Kwang Sook, a Seoul-based analyst at HI Investment & Securities Co. 'Things will get uglier next year as both container and bulk rates should fall on the global economic slump.' Hanjin dropped 2,950 won to close at 16,950 won, compared with the benchmark Kospi index's 2.1 per cent fall.
Operating profit, or sales minus the cost of goods sold and administrative expenses, fell 37 per cent to 77.9 billion won from 122.7 billion won a year earlier. The profit from bulk-shipping totalled 82.6 billion won, while the container-shipping loss was 4.7 billion won. The company didn't provide year-earlier figures.
The shipping line also had a 266 billion won loss from converting about US$1.7 billion debt into won, it said.
The average price of 380 Centistoke marine bunker fuel, used by ships, was US$670.25 a metric ton in the third quarter compared with US$382.99 a year earlier, according to data compiled by Bloomberg.
The Baltic Dry Index, a measure of commodity-shipping rates, has tumbled 93 per cent since hitting a record on May 20 because of slowing demand. The index fell 1.1 per cent yesterday to 820, near a six-year low.
The 283.7 billion won (S$319.3 million) loss compares with a profit of 112 billion won a year earlier, the Seoul-based shipping line said in a regulatory filing yesterday. Sales rose 39 per cent to 2.56 trillion won.
The shipping line's container unit reported an operating loss after a 'sharp fall' in rates on Asia-Europe routes, the company said in an e-mailed statement.
Like STX Pan Ocean Co and Hyundai Merchant Marine Co, Hanjin also suffered from the won's 13 per cent depreciation in the quarter, which raised the value of its dollar-denominated debt, and from a 75 per cent jump in fuel prices.
'The drop in the won hurt the bottom line,' said Kang Kwang Sook, a Seoul-based analyst at HI Investment & Securities Co. 'Things will get uglier next year as both container and bulk rates should fall on the global economic slump.' Hanjin dropped 2,950 won to close at 16,950 won, compared with the benchmark Kospi index's 2.1 per cent fall.
Operating profit, or sales minus the cost of goods sold and administrative expenses, fell 37 per cent to 77.9 billion won from 122.7 billion won a year earlier. The profit from bulk-shipping totalled 82.6 billion won, while the container-shipping loss was 4.7 billion won. The company didn't provide year-earlier figures.
The shipping line also had a 266 billion won loss from converting about US$1.7 billion debt into won, it said.
The average price of 380 Centistoke marine bunker fuel, used by ships, was US$670.25 a metric ton in the third quarter compared with US$382.99 a year earlier, according to data compiled by Bloomberg.
The Baltic Dry Index, a measure of commodity-shipping rates, has tumbled 93 per cent since hitting a record on May 20 because of slowing demand. The index fell 1.1 per cent yesterday to 820, near a six-year low.