Pan Ocean reverses into the red after repaying rehab liabilities

Net loss in the six-month period ended 30 June 2015 stood at $55.44m as against the profit of $357.64m in the previous corresponding period.

Pan Ocean said that it is obligated to repay the rehabilitation liabilities in full without adjusting discounted cash flow which has been reflected throughout the year. Consequently, other non-operating activities, which had recorded a profit of $283.29m in second quarter of 2014, have turned to a loss of $190.06m in the second quarter of 2015.

This led to a loss of $157.05m in the second quarter as opposed to the gain of $101.61m in the first quarter this year.

The former STX Pan Ocean also posted a first half revenue of $742.29m, a decrease of 2.9% year-on-year.

Pan Ocean, which went into receivership in June 2013, has applied to the court in Seoul in July to exit its debt rehabilitation process.

In June, the shipowner was acquired by Harim Group and JKL Consortium at a price of KRW1.01trn ($860.13m).