Pan Ocean Co. reported a 15.4% increase in first-quarter operating profit to 113.3 billion won ($79.1 million), surpassing analyst estimates amid challenging market conditions.
Sales jumped 42.8% to 1.39 trillion won ($970 million) from a year earlier, driven by higher transport volumes and grain trading activity, the Seoul-based shipping company said Wednesday.
While the bulk carrier segment, Pan Ocean’s flagship business, saw operating profit decline 10.3% to 47.8 billion won ($33.4 million) due to falling freight rates, the container division provided a bright spot by turning profitable with earnings of 15.8 billion won ($11 million). The tanker division posted a 48% drop in operating profit to 19.9 billion won ($13.9 million).
Pan Ocean, which operates over 340 vessels including bulk carriers, container ships, and tankers, has been actively expanding its fleet and diversifying its business portfolio to weather volatility in shipping markets. The company’s results come as global shipping firms navigate uncertain trade conditions amid ongoing tariff disputes.
Net profit rose 19.2% to 72 billion won ($50.2 million), exceeding the 104 billion won forecast by market analysts, as the company’s strategy of diversification beyond its core dry bulk business has helped offset weakness in traditional segments.
