SM Shipping Achieves 72% of Last Year's Operating Profit in Two Months... IPO Positive Signal

SM Shipping's 'SM Mumbai' departing from Busan Port carrying cargo exported to North America

[Asia Economy Reporter Dongwoo Lee] SM Line announced on the 11th that it has exceeded 70% of last year's annual operating profit in just two months.

SM Line's estimated operating profit in the shipping sector until last month was approximately 86.4 billion KRW, accounting for 72% of last year's annual operating profit in the shipping sector (about 120.6 billion KRW).

SM Line stated, "It is certain that the total operating profit for last year will be exceeded during the first quarter of this year," adding, "A green light has been turned on for the second half IPO (Initial Public Offering) planned by SM Line."

SM Line analyzed the performance factors as ▲ cost structure improvement through cooperation with the shipping alliance 2M ▲ continuous full loading on fixed routes ▲ targeting niche markets in the Americas ▲ stable fuel procurement ▲ recovery of market conditions and freight rates due to COVID-19.

The company forecasted that if this trend continues, the operating profit scale this year will reach 300 to 400 billion KRW. Accordingly, it estimated the corporate value to be about 2.5 trillion KRW or more.

Woo Oh-hyun, Chairman of SM Group, emphasized, "Even when the shipping market was difficult in the past, investments boldly made with the mindset that 'crisis is opportunity' are bearing fruit," and said, "We will wholeheartedly support SM Line's successful IPO."

Strengthening Investment in Ships and Container Equipment

SM Line plans to invest the funds raised through this listing in securing ships and container equipment to expand its sales capabilities in the Americas and Asia regions. In addition to cooperation with global shipping companies Maersk and MSC, it plans to enhance cooperation with third-party carriers and improve sales capabilities through the national shipping alliance 'K-Alliance' in the Asia regional routes.

As domestic exporters faced difficulties securing shipping space due to COVID-19, SM Line has supported domestic shippers by deploying additional vessels. Following the addition of a total of four container ships from June to December last year, on the 7th, an additional container ship of about 3,500 TEU (1 TEU = one 20-foot container) departed Busan Port carrying export cargo.

Park Ki-hoon, CEO of SM Line, expressed confidence, saying, "This IPO will be a catalyst for SM Line to expand its influence in the global shipping market and take a step forward," adding, "We will not be complacent with the present but will continuously pursue service expansion and business diversification in preparation for downturns, while becoming a trusted company capable of sustainable growth through transparent management."

SM Group's shipping affiliates include Daehan Shipping, Daehan Sangseon, and KLCSM, and SM Line's shareholders consist of Samra Midas with 41.4%, TK Chemical with 29.6%, and Samra with 29% stakes.

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