Korea Line reports 10.7 percent rise in Q2 operating profit

Quarterly performance of Korea Line Corp. The blue bars represent revenue, and the orange bars represent operating profit. [Courtesy of Korea Line Corp.]

Korea Line Corp., a subsidiary of SM Group’s shipping division, announced on Friday that its consolidated operating profit for the second quarter of this year came to 72.2 billion won ($53.1 million), up 10.7 percent from the same period last year.

Sales grew by 18.9 percent to 408.5 billion won for the April-June period, and its quarterly net income surged by 101.8 percent to 51.9 billion won.

For the first half of this year, Korea Line recorded revenue of 923.7 billion won and an operating profit of 198.9 billion won, up 32 percent and 59 percent, respectively, compared to the same period last year.

The company attributed its improved performance to stable profits in its dedicated shipping business and favorable market conditions. The Baltic Dry Index (BDI), a key indicator for bulk shipping rates, averaged 1,848 points in the second quarter, up about 39 percent from the same period last year.

Last month, Korea Line appointed Han Soo-han, the former head of the management division, as its new CEO during an extraordinary shareholders’ meeting.

“Amid recent geopolitical risks affecting the shipping industry and an uncertain global economic environment, I feel a deep sense of responsibility in assuming the role of CEO. I will focus on ensuring stable profits and securing liquidity to achieve sustainable growth through sound management,” he said.