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Hanjin Shipping loss widens to $433m in first half

Hanjin Shipping loss widens to $433m in first half
South Korea’s Hanjin Shipping has stayed in the red with a first half loss of KRW473.1bn ($433.14m) due to the prolonged weak shipping market.

The first half loss compared to the profit of KRW127.2bn in the same period of 2015. Following a first quarter loss of KRW261.1bn, Hanjin Shipping extended the losing streak with a second quarter loss of KRW212bn, accumulating to the first half loss of KRW473.1bn.

The first half revenue came up to KRW3.03trn, down 26.3% from KRW4.1trn in the previous corresponding period.

The shipowner is currently struggling to regain its financial stability and faces court receivership. Recently, the Korean government has affirmed that there will be no financial aid extended to the company.

Hanjin Shipping has approached Seaspan to seek reduction in charter rates but the latter has rejected the request.

Meanwhile, Hanjin Shipping’s deadline for conditional voluntary restructuring agreement has been extended by one month and it plans to wrap up its bondholders’ meeting, charter rate adjustment negotiation and ship finance maturity adjustment until early-September.

“For remaining second half of the year, Hanjin Shipping will focus on recovering its sales power and maximising its profitability for the earliest financial normalisation of the company,” Hanjin Shipping stated.