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Hanjin Heavy shares resume trading on Seoul bourse after financial restructuring

All Headlines 09:31 May 21, 2019

SEOUL, May 21 (Yonhap) -- Shares in Hanjin Heavy Industries & Construction Co., a midsized South Korean shipbuilder, resumed trading on the Seoul bourse Tuesday following its financial restructuring efforts.

Hanjin Heavy's stock trading had been suspended since February due to capital erosion. The shipyard saw its losses snowballing to 1.32 trillion won (US$1.15 billion) last year, from a loss of 278 billion won a year earlier as it reflected losses from its ties with its Philippine affiliate, which received approval for a rehabilitation scheme in January.

The creditors, including the state-run Korea Development Bank, then accepted a 680 billion-won debt-for-equity swap, as well as other restructuring efforts, to help the shipbuilder escape from capital erosion.

Despite a slump in the global shipbuilding industry, Hanjin Heavy said it aims to normalize its business with new projects.

Hanjin Heavy is set to sell some of its property near a port in Incheon that is worth 131.4 billion won and build a logistics center after selecting a preferred bidder. The company is also set to take part in a modernization project for a Seoul terminal that is estimated around 1 trillion won.

Hanjin Heavy said it will also try to improve profitability in its shipbuilding business by focusing on making special-purpose vessels. As of the end of April, the company has secured 23 orders for special-purpose vessels worth 1.6 trillion won.

For the construction business, the company said it has so far secured 220 billion won worth of orders this year.

Shares of Hanjin Heavy opened lower on the Seoul bourse, losing 8.24 percent to 9,130 won as of 9:15 a.m.

Hanjin Heavy Industries & Construction's corporate logo atop its main office building in downtown Seoul (Yonhap)

kdon@yna.co.kr
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