Daehan Shipping, a subsidiary of SM Group, announced on September 2 that it has signed a long-term contract with Hyundai Glovis for car carriers (PCTC) worth 73 billion won.
The contract amount represents 5.7% of Daehan Shipping's consolidated revenue of 1.277 trillion won last year. The contract period will begin in November and last for 5 years and 4 months. Prior to this, Daehan Shipping plans to acquire a used PCTC to be utilized in the main contract, increasing its fleet for long-term operations with Hyundai Glovis from one to two vessels.
Daehan Shipping explained that its expertise in ship management and the strong trust built with Hyundai Glovis since 2015 have contributed to securing this contract.
With this contract, Daehan Shipping aims to solidify a stable business structure centered on long-term contracts with reputable clients. The company anticipates that the rising demand for PCTCs, driven by increased automobile exports from Asia, will allow for further business expansion.
Additionally, amid the competitive landscape for liquefied natural gas (LNG) carriers due to energy supply chain risks from conflicts in the Middle East, Daehan Shipping plans to create growth momentum through additional contracts with major clients such as Korea Gas Corporation.
Min Sang-ki, CEO of Daehan Shipping, stated, "This contract with Hyundai Glovis has secured a stable new revenue source and laid the groundwork for expanding our PCTC business. We will respond swiftly to changes and uncertainties in the global shipping market while continuing to seek new business opportunities that meet both stability and profitability, as well as strategic investments to enhance future growth and shareholder value."
Meanwhile, Daehan Shipping reported a consolidated operating profit of 63 billion won in the second quarter of this year, a 91% increase compared to 33 billion won in the same period last year, indicating a solid performance trend.
* This article has been translated by AI.
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