Hanjin Heavy Industries is back on the stock marketShares in Hanjin Heavy Industries & Construction, a midsize Korean shipbuilder, resumed trading on the Korea Exchange Tuesday following its financial restructuring efforts.
Hanjin Heavy’s stock trading had been suspended since February due to capital erosion. The shipyard saw its losses snowballing to 1.32 trillion won ($1.15 billion) last year, from a loss of 278 billion won a year earlier as it reflected losses from its ties with its Philippine affiliate, which received approval for a rehabilitation scheme in January. The creditors, including state-run Korea Development Bank, then accepted a 680-billion-won debt-for-equity swap, as well as other restructuring efforts, to help the shipbuilder escape from capital erosion.
Despite a slump in the global shipbuilding industry, Hanjin Heavy said it aims to normalize its business with new projects.
Hanjin Heavy is set to sell property near a port in Incheon worth 131.4 billion won and build a logistics center after selecting a preferred bidder. The company is also set to take part in a modernization project for a Seoul terminal.
Hanjin Heavy said it will also try to improve profitability in its shipbuilding business by focusing on making special-purpose vessels. As of the end of April, the company secured 23 orders for special-purpose vessels worth 1.6 trillion won. For the construction business, the company said it has so far secured 220 billion won worth of orders this year. Shares of Hanjin Heavy closed lower, losing 10.25 percent to 8,930 won.
More in Finance
Jump in Covid-19 cases ends Kospi winning streak
Fintech convention held virtually this year
Seoul stocks inch up amid hopes of economic recovery
Kakao, Samsung Fire & Marine joint venture falls apart
Mirae Asset hit with big fine for antitrust violations