Pan Ocean posts 51.1% jump in full-year earnings

SINGAPORE - South Korean bulk carrier Pan Ocean Co saw its full-year net income jump 51.1 per cent to US$126.48 million on a 27.7 per cent increase in revenue as market conditions for dry bulk carriers improved in 2017.

Earnings per share was US$0.23, up from US$0.16.

Revenue for the 12 months ended Dec 31, 2017 rose to US$2.07 billion, up from US$1.62 billion for FY2016.

Full-year gross profit was 21.0 per cent higher year-on-year at US$233.55 million as the increase in revenue more than offset an increase in cost of sales.

Other non-operating loss was 72 per cent lower at US$6.10 million.

Pan Ocean said that the average Baltic Dry Index, a barometer for the health of the dry bulk shipping market, has risen over 70 per cent to 1,145 points from 673 points in 2016.

This came as demand for commodities picked up while global fleet for dry bulk ships expanded just marginally.

Pan Ocean added that dry bulk trade is expected to continue to strengthen this year while fleet growth for 2018 is projected at below 2.0 per cent, down from 2.9 per cent for 2017.

Pan Ocean requested to lift a trading halt that was put in force before the release of its FY2017 financial results.