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Pan Ocean to spend 121.6b won on two new bulk carriers

SOUTH Korean carrier Pan Ocean Co wants to buy two new ships, the company disclosed, after a board resolution was passed on Friday. It had entered a long-term contract to ship iron ore the day prior.

The board voted to invest 121.6 billion won (S$147 million), or 5.05 per cent of its share capital, towards a shipbuilding contract for two cape-size bulk carriers for long-term cargo contracts.

Singapore-listed Pan Ocean added in its bourse filing that the vessel delivery dates of between Sept 30, 2020, and April 29, 2021 "might be changed, depending on shipbuilding process".

Meanwhile, a freshly inked five-year contract with miner Vale International will see Pan Ocean carry about 8.12 million tonnes of Brazilian iron ore from the second half of 2020.

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"The main objective of the company for entering into this (contract) is to secure a stabilised source of revenue and profit," Pan Ocean said in a separate announcement.

Such income might not go amiss, even as Pan Ocean most recently reported a net profit of US$108.6 million for the nine months to Sept 30, 2018, up by 30.4 per cent on the year before, on revenue of US$1.85 billion in that period. (see amendment note)

Amendment note: 

An earlier version of this article incorrectly stated that Pan Ocean most recently reported a net loss of US$1.68 million for the nine months to Sept 30, 2018, despite achieving revenue of US$1.85 billion in that period. It should have been a net profit of US$108.6 million for the nine months to Sept 30, 2018, up by 30.4 per cent on the year before, on revenue of US$1.85 billion in that period. The article above has been revised to reflect this.