Hyundai Merchant continues to suffer operating loss in Q2

SEOUL-- Hyundai Merchant Marine Co., South Korea's top shipping firm, said Friday that it continued to suffer an operating loss in the second quarter of the year due to still lower freight rates.

Its operating loss reached 128 billion won (US$112 million) in the April-June period, the company said in a regulatory filing.

Sales, however, jumped 22.1 percent on-year to 1.24 trillion won over the cited period, it said.

"Although revenues increased, which helped narrow the company's operating loss, freight rates remained low, denting our bottom line," it said.

Hyundai Merchant handled some 986,000 TEUs in the second quarter, up 46 percent from a year earlier.

Fuel costs also surged 62 percent, but its operating loss from its container shipping business narrowed to 96.2 billion won from 220 billion won over the cited period, it said.

Hyundai Merchant expects business conditions to improve starting this quarter, with shipping rates to improve as well.

Source: Yonhap News Agency

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