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Hanjin Shipping returns to profit of $21m in Q1

Hanjin Shipping returns to profit of $21m in Q1
South Korea’s Hanjin Shipping has returned to profit in the first quarter, thanks to various unit cost improvement efforts which boosted cost savings.

Net profit for the quarter ended 31 March 2015 rose to KRW22.9bn ($21m) as against a loss of KRW224.5bn in the previous corresponding quarter.

Revenue improved marginally by 0.5% year-on-year to KRW2.15trn.

Hanjin Shipping said it is concentrating all its efforts to maintain stable figures by establishing low cost structure ans strengthening the core capability of the company.

In its container line division, total transport volume fell 0.7% year-on-year to 1.11m teu during the first quarter. The division’s operating profit stood at KRW163.9bn, erasing the operating loss of KRW35.8bn a year ago.

“Improvement of these figures was possible through rationalisation of service network and dramatic cutback of cargo variable expenses and bunker cost,” Hanjin Shipping said.

The group’s bulk business division, however, recorded an operating loss of KRW28.3bn due to the slow market, narrowing from the operating loss of KRW37.1bn a year earlier.