South Korean bulk shipping company Pan Ocean has reported a net profit of USD 750.9 million in its full year results for 2014 on the backdrop of its successful restructuring process.
The company said that its increased profit reflects the gain on exemption of dept through debt-to-equity conversion, along with contract termination of high cost chartered vessels and reducing of sales costs.
Pan Ocean returned to profit after a major loss of USD 1.76 bn recorded in 2013.
The results on the other hand show a fall in the company’s revenue of 36.1% year-on-year to USD 1.56 bn as the company worked to scale down its fleet and cut cargo volume within its rehabilitation procedure.
Pan Ocean, formerly STX Pan Ocean, sealed the takeover deal with its preferred bidder Harim Group & JKL Consortium in February this year.
The consortium, made up by poultry processor Harim and Korean private equity group JKL Partners, is expected to pay up to USD 968 million for the acquisition.
The deal provides for Pan Ocean’s recapitalization through sale of equity, thus covering the company’s accumulated debt.
World Maritime News Staff