Daehan Shipping Posts KRW 74.4 Billion Q1 Operating Profit, Surpassing Market Forecast by 36%

LNG Carrier Division Drives Performance Improvement

Tanker Operating Profit Soars 99%

Daehan Shipping, the shipping division of SM Group, achieved results that significantly exceeded market expectations despite market volatility caused by Middle East risks.

Bulk carrier SM Dragon operated by Korea Shipping Corporation. Korea Shipping Corporation

On May 18, Daehan Shipping announced that its consolidated revenue for the first quarter of this year was KRW 277.8 billion, with operating profit reaching KRW 74.4 billion.

Operating profit was 36% higher than the market estimate of KRW 54.8 billion. Compared to the same period last year, revenue (KRW 330.5 billion) decreased by 16%, but operating profit (KRW 63.9 billion) increased by 16%. Even compared to the previous quarter, the fourth quarter of 2025, revenue (KRW 296.3 billion) declined by 6%, while operating profit (KRW 50.9 billion) jumped by 46%.

Daehan Shipping explained that while revenue was somewhat adjusted due to the completion of its residential development business last year and increased market volatility from the recent Middle East conflict, its stable, contract-based business structure and strong performance across individual business divisions led to a rise in operating profit.

In particular, the liquefied natural gas (LNG) carrier division drove improved results in the first quarter, posting revenue of KRW 94.0 billion and operating profit of KRW 41.5 billion. These figures represent increases of 12% and 74%, respectively, compared to the same period last year, attributed to expanded sales from enhanced LNG fleet operational efficiency and a general improvement in cost structure.

The bulk carrier division maintained solid profitability based on contract shipping. As the company proactively reduced spot and short-term charters in response to Middle East-related risks, revenue declined 15% quarter-on-quarter to KRW 129.4 billion, but operating profit actually rose by 2%.

The tanker division also maximized its profit structure by securing vessels at low charter rates during a market downturn. With the recent upswing in the tanker market, the division achieved operating profit of KRW 5.7 billion, an increase of 99% compared to the previous quarter due to higher freight revenues.

A Daehan Shipping representative stated, "By focusing on contract-based shipping, which is typically structured through long-term contracts, we strive to minimize risk and enhance profitability in the rapidly changing global shipping market. Leveraging our extensive business expertise and crisis management capabilities accumulated over many years, we will continue to provide transportation services and build a foundation for sustainable growth."

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