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Korea Line Corp. Reports Q2 Operating Profit of KRW 63 Billion, Up 91% YoY
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- Revenue reaches KRW 312.8 billion, driven by long-term industrial carrier contracts amid favorable market conditions- Effective risk management strategy reduces volatile tramp spot operations
Korea Line Corporation (KLC), a shipping subsidiary of SM Group (Chairman Woo Oh-hyun), announced on the 18th that its consolidated operating profit for the second quarter of this year reached KRW 63 billion, a 91% increase compared to the same period last year (KRW 33 billion).During the same period, revenue recorded KRW 312.8 billion (down 6% from KRW 332.2 billion year-on-year), slightly impacted by the completion of real estate development projects in its non-shipping division. Cumulative performance for the first half of the year (Q1 and Q2) demonstrated strong resilience despite global shipping market uncertainties, achieving revenue of KRW 590.6 billion and an operating profit of KRW 137.4 billion.Above all, the company’s stable business structure centered on dedicated vessels and the expansion of charter-out operations drove performance amid favorable market conditions.KLC explained that performance was significantly boosted by the full reflection of revenues starting in Q1 from two second-hand vessels acquired last year, as well as long-term consecutive voyage contracts signed with Korea East-West Power in August last year. In addition, to hedge against risks stemming from the prolonged conflict in the Middle East, the company reduced relatively volatile tramp spot operations and instead expanded charter-out operations, further supporting profitability.Along with strong operational performance, the company also achieved notable progress in financial soundness in the first half of the year.As of Q2, KLC's debt ratio stood at approximately 64%, maintaining a steady downward trend over the past three years. After recording debt ratios of around 100% and 70% in 2024 and 2025, respectively, the financial structure gradually improved as operating cash flows from the core shipping business and liquid funds secured through real estate projects were prioritized for paying down high-interest debt.Sang Ki Min, CEO of Korea Line Corporation, stated, "Despite fluctuations in market conditions and oil prices caused by global uncertainties and volatility, we were able to maintain steady profitability through strategic fleet management and robust risk management capabilities. Moving beyond short-term market responses, we will secure drivers for sustainable growth from a mid-to-long-term perspective by actively penetrating high-value-added markets and discovering new business opportunities."
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