Daehan Shipping Reports 63 Billion Won Q2 Operating Profit, Up 91% Year-on-Year

First-half cumulative revenue reaches 590.6 billion won
Strong performance in long-term contracts and charter operations
Debt ratio improves to 64%

Daehan Shipping, a subsidiary of SM Group’s shipping division, recorded strong results in the second quarter of this year, driven by stable operations centered on dedicated vessels and the expansion of long-term charters.

The SM Eagle, a liquefied natural gas (LNG) carrier operated by Daehan Shipping. Daehan Shipping

Daehan Shipping announced on August 18 that its consolidated operating profit for the second quarter of this year reached 63 billion won, marking a 91% increase from 33 billion won in the same period last year.

During the same period, revenue was 312.8 billion won, a slight decline of 6% compared to the previous year's 332.2 billion won, attributed to the impact of completed construction pre-sale business in the non-shipping sector. For the first half of the year, the company recorded revenue of 590.6 billion won and operating profit of 137.4 billion won.

Amid favorable shipping market conditions, the company's stable business structure focusing on dedicated vessels and expanded long-term charter operations drove strong performance. Daehan Shipping explained that the delivery of two secondhand ships last year and the long-term shipping contract signed in August last year with Korea East-West Power and others began to make a full contribution from the first quarter of this year. The company also noted that increasing long-term charter operations, while reducing the more volatile irregular spot operations in response to ongoing risks from the prolonged Middle East conflict, contributed to the improvement in profitability.

Financial soundness also continued to improve. Daehan Shipping’s debt ratio stood at about 64% as of the second quarter of this year, maintaining a downward trend over the past three years. Debt ratios for 2024 and 2025 were approximately 100% and 70%, respectively. The company stabilized its financial structure by prioritizing the repayment of high-interest borrowings using operating cash generated from its core shipping business and liquidity secured through its pre-sale business.

Min Sanggi, CEO of Daehan Shipping, commented, “Although market conditions and oil prices fluctuated due to global market uncertainties and volatility, we were able to maintain steady profitability through strategic fleet management and risk control capabilities. In addition to adapting to short-term market changes, we will proactively target high-value-added markets and explore new businesses from a mid- to long-term perspective to secure sustainable growth engines.”

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