South Korean shipping company Pan Ocean has reported a 50.48 pct profit jump in its full-year results for 2017, mostly driven by the dry bulk market’s recovery.
Namely, Pan Ocean’s net profit came at USD 124.9 million, a major surge when compared to USD 83 million reported in 2016.
The company’s operating profit recorded 19.09 pct increase, reaching USD 172.4 million.
Full-year sales marked a 27.74 pct increase, totaling in USD 2.06 billion.
At the end of November 2017, the company revealed plans on investing in six very large ore carrier newbuildings (VLOCs).
Pan Ocean has earmarked KRW 483.1 billion (USD 444 million) to finance the order.
The first ship from the batch is scheduled for delivery in December 2019, while the final one from the series is set for completion and delivery from Chinese yard Times New Shipping in September 2021.
The order came in the wake of the company’s 27-year long Contract Of Affreightment (COA) with Brazilian mining company Vale International SA for the transportation of Brazilian iron ore, worth approximately USD 1.8 billion.
As explained by Pan Ocean, the COA, starting from the first quarter of 2020, will secure a stable source of revenue and profit for the shipping company.