Hanjin Shipping report mixed Q2 results

Hanjin Shipping announced its financial results for Q2 2015. The company reported total sales revenue of KRW1.99 trillion ($ 1.81bn), a fall of 6.3% year-on-year. The company also recorded operating profit of KRW59.2bn ($54m), this represented an increase of 147.7% year-on-year. Accordingly, the company’s margin stood at 2.98%.

Overall, the decline in revenue was the combined result of a fall in sea freight rates and slipping volumes. In contrast the increase in operating profit was primarily attributed to the company’s cost saving programme.

Hanjin’s container liner division recorded revenue of KRW1.83 trillion, a 5.4% decrease year-on-year which was the result of a drop in freight rates. However, its operating profit jumped by 66.9% to KRW62.6bn year-on-year, driven by rationalized service lanes and lower bunker costs.

Meanwhile, Hanjin’s bulk business division recorded another operating loss in Q2 of KRW22.8bn. The company stated that this was mainly caused by China’s reduced import of coal and other seasonal effects. Other businesses including terminal division saw an upturn in operating profit, which climbed 71.7% up to KRW19.4bn.