Hanjin Shipping earnings plunge

Hanjin Shipping earnings plunge

Hanjin Shipping Co. said first-half net profit plunged 79 percent year-on-year to 34.4 billion Korean won ($2.9 billion) from $136.6 million a year ago on smaller gains due to foreign currency fluctuations, the company said in a disclosure to the Financial Supervisory Service Aug. 8.

South Korea's largest shipping company saw its gains from foreign currency conversion slump to $13.7 million in the first half of this year from $229.6 million a year ago when the won had strengthened.

Hanjin Shipping has about $2.5 billion in dollar-denominated debt, according to published reports.

Hanjin Shipping's ordinary profit for the January-June period slumped 79 percent year-on-year to $41.6 million.

However, its revenue climbed 20 percent $2.22 billion in the January-June period helped by increasing freight rates and robust demand for container shipments. Operating profit surged to $65.4 million from $3.3 million a year ago on higher freight rates, particularly in May and June.

Hanjin Shipping said it carried 12 percent more containers this year compared with a year ago, totaling 1.26 million TEUs.