Hahn & Company Rebalances Fleet Portfolios Between SK Shipping and H-Line Shipping

SK Shipping to Rebrand as K-LNG

Korean private equity fund (PEF) manager Hahn & Company announced on August 13 that it has conducted portfolio rebalancing by swapping fleets between its portfolio shipping companies, SK Shipping and H-Line Shipping.

SK Shipping will receive 16 liquefied natural gas (LNG) carriers from H-Line Shipping, while transferring 12 tankers and approximately $300 million (425.7 billion won) in cash. The company is currently obtaining consent from clients and lenders for the transaction. Upon closing, SK Shipping's assets will total about 11 trillion won, and H-Line Shipping's assets will be around 5 trillion won.

SK Shipping will change its name to 'K-LNG' as part of its ambition to become Asia's largest and the world's third largest LNG shipping company, operating a fleet of 32 LNG carriers.

Hahn & Company established H-Line Shipping in 2014 by acquiring Hanjin Shipping's dedicated vessel division. In 2016, it combined it with Hyundai Merchant Marine's bulk shipping business, and in 2018, it also acquired management rights for SK Shipping.

Hahn & Company stated that this transaction could also contribute to national energy security. While Korea is the world's third largest LNG importer, its global presence in shipping had been limited. Looking ahead, the emergence of K-LNG as a representative global leading LNG shipping company for Korea is expected to help mitigate such external dependency risks.

For H-Line Shipping, this rebalancing allows it to secure tankers under long-term contracts with domestic and international shippers, thereby expanding its stable sources of revenue. This is particularly significant, as Korea relies entirely on maritime shipping for its oil imports.

Both companies have grown since their acquisition by the private equity fund. H-Line Shipping's operating profit rose from 127.3 billion won immediately after its establishment in 2015 to 369.4 billion won last year, a 2.9-fold increase. Its operating margin stands at around 28%, among the highest in the industry. Over the same period, EBITDA (earnings before interest, taxes, depreciation, and amortization) grew from 189.5 billion won to 753.8 billion won, nearly a fourfold increase. SK Shipping's operating profit also jumped 6.8 times, from 73.3 billion won in 2018 at the time of acquisition, to 504 billion won in 2025. Over the same period, its EBITDA rose from 231.7 billion won to 781.1 billion won, approximately a 3.4-fold increase.

This content was produced with the assistance of AI translation services.