Pan Ocean(028670) is surging 12% on the 4th after it released second-quarter results that beat market expectations.
As of 9:30 a.m. that day, Pan Ocean was trading at 5,540 won on the Korea Exchange, up 605 won (12.26%) from the previous session.
Pan Ocean said earlier that on a consolidation basis for the second quarter, revenue was 1.9137 trillion won and operating profit was 193.7 billion won. Operating profit far exceeded the market expectation (155.7 billion won).
By segment, the bulk segment posted operating profit of 84.7 billion won in the second quarter, growing about 60% from a year earlier. This year, with the Simandou project and the inflow of iron ore and coal cargoes from South America, the ton-mile effect stood out across the market. In particular, a strategy to expand larger Capesize vessels led the improvement in results.
Lee Jae-hyeok, an LS Securities researcher, said, "Amid a favorable shipping market, an aggressive fleet strategy delivered strong results," and analyzed, "In the second half, we can expect upside in earnings from a strategy focused on the strong Capesize bulk carrier market."