Neither Hanjin Shipping nor Hyundai Merchant Marine (HMM), South Korea's two major shipping conglomerates, have any prospects of turning a profit anytime soon. Their financial states are far too weak, according to a new analysis by Drewry Equity Research.
Hanjin has presented disappointing financial results since 2011, and in spite of the management's current attempts to rationalize and cut costs in hopes of a 2014 turnaround, Drewy does not expect Hanjin to become profitable within the next three years. The carrier's interest costs, which grew 168 percent between 2008 and 2013, put pressure on bottom lines and the carrier's capital base.
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