SM Shipping Posts Q3 Operating Profit of 40.4 Billion KRW... Another Record High Since Inception

Surplus for Two Consecutive Quarters Supported by Freight Rate Surge and Low Oil Prices Since COVID-19

[Asia Economy Reporter Yoo Je-hoon] SM Line achieved its highest performance since its establishment, thanks to the surge in container shipping rates caused by the novel coronavirus disease (COVID-19).

SM Line announced on the 23rd that its shipping division recorded sales of 219.2 billion KRW and an operating profit of 40.4 billion KRW in the third quarter on a standalone basis. The operating profit of 40.4 billion KRW for the quarter more than doubled the previous record of 20.1 billion KRW set in the second quarter.

The background of this strong performance is attributed to the rise in shipping rates due to COVID-19. In fact, the Shanghai Containerized Freight Index (SCFI), an indicator of international container shipping rates, reached a record high of 1,938 points as of the 20th. Additionally, the drop in oil prices caused by COVID-19 is also considered a factor that improves the profitability of shipping companies.

SM Line expects to achieve even higher results in the fourth quarter if the current shipping market conditions continue. Park Ki-hoon, CEO of SM Line, stated, "We will not be complacent with the current performance but will prepare for the post-COVID era and realize the motto of being a small but strong company capable of continuous and sustainable profit generation."

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