Pan Ocean tops forecast on LNG, tanker strength
The Malaysia-registered LNG tanker Serry Sandrawash receives LNG for power generation at an LNG (liquefied natural gas) base in Incheon, west of Seoul, South Korea. File. Photo by YONHAP / EPA
May 4 (Asia Today) — Pan Ocean beat market expectations in the first quarter, helped by strong performance in its LNG and tanker businesses.
Pan Ocean said Monday its preliminary first-quarter sales rose 8.3% from a year earlier to 1.51 trillion won ($1.03 billion), while operating profit increased 24.4% to 140.9 billion won ($95.8 million).
The results exceeded market forecasts of 1.46 trillion won ($989 million) in sales and 132.2 billion won ($89.8 million) in operating profit.
Compared with the previous quarter, sales rose 2.2% and operating profit increased 8%. Analysts said expansion of the company’s LNG-focused business portfolio helped defend earnings despite the seasonal shipping slowdown.
By business segment, tanker operating profit rose 41.5% from a year earlier to 28.1 billion won ($19.1 million), supported by strong medium-range tanker market conditions. The LNG business posted 47.2 billion won ($32.1 million) in operating profit, up 49.7%, helped by fleet expansion and higher utilization.
The bulk segment, including grain operations, continued to grow from a year earlier, but profitability weakened from the previous quarter because of spot voyage losses caused by geopolitical risks from U.S.-Iran tensions and rising oil prices. Bulk operating profit totaled 54.7 billion won ($37.2 million).
The container segment posted 9 billion won ($6.1 million) in operating profit, down 42.9% from a year earlier, as oversupply pushed freight rates lower.
Pan Ocean said its strategy of diversifying into LNG and tankers to manage shipping market volatility has begun to show results.
“We will continue efforts to strengthen our ability to respond to market changes, expand our business portfolio and secure stable profitability,” a Pan Ocean official said. “At the same time, we will establish our position as a sustainable company through active ESG management.”
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260504010000408