Pan Ocean to buy two new bulk carriers for $147m

SINGAPORE - South Korean carrier Pan Ocean Co wants to buy two new ships, the company disclosed, after a board resolution was passed on Friday (Jan 25). It had entered a long-term contract to ship iron ore the day prior.

The board voted to invest 121.6 billion won (S$147 million), or 5.05 per cent of its share capital, towards a shipbuilding contract for two cape-size bulk carriers for long-term cargo contracts.

Singapore-listed Pan Ocean added in its bourse filing that the vessel delivery dates of between Sept 30, 2020, and April 29, 2021, "might be changed, depending on shipbuilding process".

Meanwhile, a freshly inked five-year contract with miner Vale International will see Pan Ocean carry about 8.12 million tonnes of Brazilian iron ore from the second half of 2020.

"The main objective of the company for entering into this (contract) is to secure a stabilised source of revenue and profit," Pan Ocean said in a separate announcement.

Such income might not go amiss, even as Pan Ocean most recently reported a net profit of US$108.6 million for the nine months to Sept 30, 2018, up by 30.4 per cent on the year before, on revenue of US$1.85 billion in that period.

Correction note: An earlier version of the article said that Pan Ocean reported a net loss of US$1.68 million for the nine months to Sept 30, 2018. This is incorrect. It reported a net profit of US$108.6 million. We are sorry for the error.