Pan Ocean reported a modest 2.2% decline in third-quarter operating profit to 125.2 billion won ($91 million), as trade friction between the US and China pressured its largest business segment. Sales edged down 0.6% to 1.27 trillion won ($920 million) for the period.
The South Korean shipper’s dry bulk division, which accounts for roughly 70% of operations, saw operating profit tumble 24.5% as widening gaps between charter rates and freight rates squeezed margins. The company attributed the pressure to intensifying trade conflicts and broader market uncertainties.
Container operations fared worse, with operating profit plunging 57.4% due to deteriorating market conditions. The tanker segment declined 29.7% following the sale of two medium-range vessels.
Only the LNG business provided relief, more than tripling its profit on new vessel deliveries. The division has emerged as a growth area for Pan Ocean, which has been expanding its gas carrier fleet through long-term charter agreements with energy majors including Shell.
For the nine months through September, sales climbed 13.5% to 3.96 trillion won ($2.87 billion), while operating profit held steady at 361.5 billion won ($262 million). The company, controlled by Harim Group, operates over 300 vessels globally.
