SM Shipping Posts 170 Billion KRW Operating Profit in Q2... Highest Quarterly Performance Since Inception

Container ship 'SM Qingdao' of SM Line

[Asia Economy Reporter Dongwoo Lee] SM Line, a shipping affiliate of SM Group, recorded its highest-ever performance in the second quarter due to the rise in maritime freight rates.

SM Line announced on the 26th that its combined separate sales for the shipping and construction sectors in the second quarter of this year reached 377.8 billion KRW, up 16.7% from the previous quarter, and operating profit increased by 29.2% to 173.4 billion KRW.

The operating profit margin for the shipping sector reached 46.7%, achieving the best performance since the company's establishment in 2017.

SM Line explained that the synergy was created by increased demand in the North American region, strong container ship freight rates, and efforts to reduce operating costs.

Based on these results, the company plans to successfully complete its initial public offering (IPO) in the second half of this year. The review of the preliminary listing examination request submitted to the Korea Exchange is currently underway.

SM Line plans to invest the funds secured through the listing in business expansion, such as fleet expansion.

To respond to carbon emission-related regulations to be applied from next year, the secured funds will be used to expand eco-friendly vessels. The company is also considering the immediate purchase of used ships to support domestic small and medium export companies. Additionally, it plans to place new orders for as many as 18,000 containers over the next three years.

Park Ki-hoon, CEO of SM Line, stated, "The IPO will be an important opportunity for the company to grow into a global shipping company representing a national deep-sea shipping carrier."

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