[Edaily Reporter KIM YOON-JEONG ] LS SECURITIES assessed that PanOcean(028670)posted second-quarter earnings that exceeded market expectations, driven by strong performance in its bulk and tanker businesses. The firm anticipates that the strong bulk shipping market will continue in the second half of the year and has maintained its “Top Pick” rating and target price of 8,700 won for the company.

On the 4th, Lee Jae-hyuk, an analyst at LS SECURITIES, stated, “Second-quarter operating profit came in at 193.7 billion won, significantly exceeding both the market consensus (155.7 billion won) and our estimate (148.9 billion won),” adding, “The strong performance stems from an aggressive fleet strategy amid favorable shipping market conditions.”
PanOcean’s second-quarter consolidated revenue totaled 1.9137 trillion won, and operating profit reached 193.7 billion won, a 57.4% increase year-over-year.
The bulk division recorded an operating profit of 84.7 billion won in the second quarter, marking approximately a 60% year-over-year increase. Analysts attribute the improved performance to the company’s strategy of expanding chartering, particularly for Capesize vessels, amid a pronounced “ton-mile” effect across the market driven by the Simandou project and increased shipments of iron ore and coal from South America throughout the year.
The tanker division also continued its strong performance from the previous quarter. This was driven by a simultaneous upturn in market conditions for medium-range (MR) product tankers and very large crude carriers (VLCCs), influenced by factors such as the conflict between the U.S. and Iran and the shutdown of refining facilities in Australia. The liquefied natural gas (LNG) segment completed its fleet expansion and maintained stable profitability based on long-term contracts, while the container segment also demonstrated improved profitability compared to the previous quarter due to a rebound in freight rates on intra-Asian routes. Although some vessels were detained during the quarter due to the situation in the Strait of Hormuz, the impact on earnings was deemed minimal.
LS SECURITIES forecasts that the strong bulk carrier market will continue into the second half of the year. The analyst explained, “We can expect profit upside in the second half as well, driven by strategies to capitalize on the strong bulk carrier market, particularly for Cape-size vessels,” adding, “Global dry bulk shipping supply and demand conditions in the second half of 2026 will be favorable in terms of both total demand and supply distances.”
He added, “If the expansion of grain shipments from South America due to the Super El Niño coincides with capacity constraints at the Panama Canal, we can also expect additional windfall gains resulting from supply chain disruptions.”