South Korea's Hanjin Heavy Industries & Construction is expected to return to the black in the third quarter of this year, an analyst said.

“Hanjin is expected to mark KRW624.7bn ($562.3m) of turnover for the third quarter, on a consolidated basis, with KRW22.9bn of operating profit and 3.7% of operating margin,” said Choi Won-kyung, analyst with Kiwoom Securities.

Choi explained that Hanjin's Yongdo yard losses for the second quarter will narrow, while its Subic yard will turnaround to reap profit in the third quarter.

“Yongdo contracted overall KRW45bn of special ships year-to-date, while Subic inked $225m, with its target reaching $1.3bn. Subic is now under negotiation for up to six 9,000-teu boxships, including options, with an European owner, which is expected to be finalised within this month,” Choi said.

(Source:transportweekly)