Korea Marine Transport Company (KMTC Line) has retained its crown as the best performing South Korean feeder operator in terms of earnings.
All 12 privately owned South Korean feeder operators have released their 2019 results as required by law for companies with assets exceeding KRW12 billion (US$9.67 million).
In 2019, KMTC Line reported revenue of KRW1.84 trillion (US$1.59 billion), up 13.5% year-on-year, while net profits more than doubled to KRW36.66 billion (US$31.71 million). The company has been profitable every year since 1985.
The substantial growth in KMTC Line’s earnings was attributed to higher freight rates for services to the Middle East and India, and surcharges for burning low-sulphur fuel oil.
In revenue terms, Sinokor Merchant Marine’s consolidated revenue was KRW1.53 trillion (US$1.33 billion), up 14.7% from 2018. However, the company, which acquired the loss-making Heung-A Line last year, also counts Hansung Line as a subsidiary, and it saw a decrease in net profits to KRW2.28 billion (US$1.98 million), reversing a net profit of KRW9.25 billion (US$8.29 million) in 2018. Although Sinokor had an operating profit of KRW51.46 billion (US$44.51 million), the company incurred higher non-operating expenses.
Heung-A Line’s revenue KRW572.68 billion (US$495.4 million) was down nearly 7%, while its net loss of KRW63.88 billion (US$55.26 million) narrowed from the net loss of KRW72.06 billion (US$64.57 million) in 2018.
Hansung Line’s net profit increased by 45% to KRW20.07 billion (US$17.36 million), while revenue was up 15% to KRW74.75 billion (US$64.66 million).
Apart from Sinokor and Heung-A Line, the other South Korean feeder operators were in the black.
Namsung Shipping also posted profits with unconsolidated 2019 revenue KRW409.36 billion (US$354.12 million) up 11%, while net profit grew 7% to KRW4.12 billion (US$3.56 million). Namsung’s subsidiary, Dong Young Shipping, saw 2019 revenue rise 9% to KRW142.48 billion (US$123.25 million), but net profit fell 29% to KRW6.79 billion (US$5.88 million).
Pan Ocean, Pan Continental Shipping, Taiyoung, Doowoo and CK Line, all five more minor regional players posted increased net profits of between 5% and 11% except Doowoo which reported a decline in net profits by 31% to KRW1.45 billion (US$1.25 million), although its revenue was up 10% to KRW40.78 billion (US$35.28 million).
South Korea’s feeder lines are KMTC Line, Sinokor Merchant Marine, Heung-A Line, Namsung Shipping, CK Line, Pan Ocean, Dongjin Shipping, Pan-Continental Shipping, Dong Young Shipping, Taiyoung Shipping, Hansung Line and Doowoo Shipping.
Martina Li
Asia Correspondent
