The Korean shipping giant Hanjin Shipping improved its financial result in 2015 and came back to profit trajectory.
It reported a $6m net profit in 2015 from a $396m loss the previous year and said it expects cost-saving measures to help it weather a tough 2016.
"The positive result is due to improved efficiency and lower costs, and the company expects to remain in the black in the 2016th," says a statement from the company.
“By solidifying [a] low-cost structure and rationalising service lanes, the container division has managed to continue its positive operating profit since 2014,” was how Hanjin described the performance.
The improved earnings came despite the fact that the company reported sales of just $6.86 billion, a 15.3 percent drop from the $8.1 billion recorded in 2014. The company attributed the drop in revenues primarily to lower freight rates.
The company’s container division had an operating profit of $119 million on sales of $6.3 billion in 2015 versus an operating profit of $137 million on sales of $7.4 billion in 2014.
Bulk shipping revenue was down 21.1% compared to 2014, dragging the carrier to a USD93 million loss in the division. However, this was a significant improvement compared to the USD154 million loss recorded in the previous year.