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**STX Pan Ocean 2Q Profit Jumps On Rising Freight
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momoli
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13-Aug-2007 22:39
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Singapore-listed STX Pan Ocean Co. Ltd. (V33.SG) said Monday its second quarter net profit surged to US$118 million from US$5 million a year earlier due to rising freight costs. Sales in the three months ended June 30 totaled US$1.3 billion, up 91% from US$672 million in the same period of 2006 due to improvement across business segments, the shipping firm said in a statement. The increase was driven by a rise in freight rates prompted by crowded ports and greater demand for imports to emerging markets. The company has benefitted from rising freight rates in Australia in recent months, where a high volume of iron ore and coal exports are saturating shipping ports. The company also gained from greater demand in China and India, which are both importing growing amounts of raw materials. "We believe this implies a very strong confidence in the medium term and long term earning potential," the company said in a statement. During the quarter, STX Pan Ocean spent US$335 million on nine new bulkers and two container ships. The company said recently it will seek a secondary listing on the Korea Stock Exchange to raise capital for investment in additional vessels. Cost of sales rose 82% to US$1.1 billion from US$622 million. 
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