STX Pan Ocean Co, South Korea's largest carrier of iron ore, grain and other commodities, boosted third-quarter profit 83-fold as it moved more cargo and charged higher rates.
Net income surged to US$143.7 million, or 8.3 US cents a share, from US$1.73 million, or 0.1 US cent, a year earlier, the Seoul-based company said in a Singapore stock exchange statement yesterday. Sales increased 84 per cent to US$1.4 billion.
STX Pan Ocean raised 590.1 billion won (S$885.1 million) in a Seoul share sale in September to expand its fleet as construction booms in India and China fuelled demand for iron-ore shipments. Rates for carrying commodities have doubled in the past year.
'The bulk-shipping industry is enjoying a super-brisk cycle now,' said Song Jae Hak, an analyst at Woori Investment & Securities Co. 'STX Pan Ocean's profit should continue to rise on the back of healthy growth in global trade,' added Mr Song, who has a 'buy' rating on the shipping company.
The shipping line climbed 4.5 per cent to S$3.72 at 9.29 am in Singapore trading. It gained 11 per cent to 4,175 won at 10.29 am in Seoul, more than double its September share-sale price of 1,720 won.
Operating profit, or sales minus the cost of goods sold and administrative expenses, soared to US$152.7 million from US$4.9 million a year earlier, the shipping line said.
In the third quarter of 2006, STX Pan Ocean made a one-time loss of US$58.5 million from speculation on shipping rates. This year, the company made an unrealised gain of US$15 million from so-called forward freight agreements in the first nine months.
Net income surged to US$143.7 million, or 8.3 US cents a share, from US$1.73 million, or 0.1 US cent, a year earlier, the Seoul-based company said in a Singapore stock exchange statement yesterday. Sales increased 84 per cent to US$1.4 billion.
STX Pan Ocean raised 590.1 billion won (S$885.1 million) in a Seoul share sale in September to expand its fleet as construction booms in India and China fuelled demand for iron-ore shipments. Rates for carrying commodities have doubled in the past year.
'The bulk-shipping industry is enjoying a super-brisk cycle now,' said Song Jae Hak, an analyst at Woori Investment & Securities Co. 'STX Pan Ocean's profit should continue to rise on the back of healthy growth in global trade,' added Mr Song, who has a 'buy' rating on the shipping company.
The shipping line climbed 4.5 per cent to S$3.72 at 9.29 am in Singapore trading. It gained 11 per cent to 4,175 won at 10.29 am in Seoul, more than double its September share-sale price of 1,720 won.
Operating profit, or sales minus the cost of goods sold and administrative expenses, soared to US$152.7 million from US$4.9 million a year earlier, the shipping line said.
In the third quarter of 2006, STX Pan Ocean made a one-time loss of US$58.5 million from speculation on shipping rates. This year, the company made an unrealised gain of US$15 million from so-called forward freight agreements in the first nine months.