Hyundai Merchant Marine expects profits next year

Hyundai Merchant Marine, which survived last year’s turmoil in the shipping sector, said it may be in the black by the latter half of next year after reporting an operating loss of more than 130 billion won ($116 million) for the first quarter this year on Monday.

The company reported 1.3 trillion won in revenue, a 7 percent increase year on year, and 131.2 billion won in operating profits, a 31.5 billion won improvement from the same quarter last year. Compared to the previous quarter, the loss is a 54.9 billion won improvement.

Hyundai saw a 37 percent increase in overall trade volume it handled. Trade volume on the trans-Pacific routes jumped by 41.4 percent.

“We will have to wait until the third or fourth quarter of next year for stable profit,” said Yoo Chang-keun, CEO of the shipping line at a press briefing in central Seoul. “But for the time being we will be seeing gradual improvements in our performance as the third and fourth quarters are conventional peak seasons for the shipping industry and freight rates are on the rise.”

By Kim Jee-hee