South Korea’s Hanjin Shipping has generated a profit in the third quarter of 2014, reversing from a loss-making position a year ago, due mainly to a one-time gain on foreign currency translation.

Net profit in the quarter ended 30 September 2014 was registered at KRW39.8bn ($37.3m) as against a deficit of KRW317.7bn in the same period of last year.

“The (quarterly) net profit – for the first time since the fourth quarter of 2010 – recorded KRW39.8bn due to foreign currency translation gain of KRW86.5bn, from the depreciation of KRW against USD, which does not affect the actual cash flow,” Hanjin Shipping said.

Revenue during the quarter, however, dropped 15.1% year-on-year to KRW2.15trn due primarily to reduced transport volume from the sale of old vessels.

In the first nine months of this year, Hanjin Shipping stayed in the red with a loss of KRW384.4bn, narrowing from the loss of KRW432.8bn in the previous corresponding period.

Looking ahead to the last quarter of 2014, Hanjin Shipping said the US economy is expected to show continued growth due to its reduced energy cost followed by the production of shale gas.

“Thus rate recovery for transpacific trades seems possible, together with stabilisation of supply and demand for the US trades caused by its limited expansion due to saturated port facilities. Furthermore, the continuous trend of falling global oil price is expected to lead to more favourable conditions for the shipping industry,” the shipowner commented.