Hahn & Company announced on Wednesday that it has reached an agreement to sell its fleet of 10 Very Large Crude Carriers (VLCCs), currently operated by SK Shipping, to Pan Ocean for approximately 1 trillion won (USD $694 million).
According to the agreement, Hahn & Co. will divest the vessels for 973.7 billion won. The transaction includes the transfer of associated long-term shipping contracts held with major domestic cargo owners and is expected to be finalized by April 11, 2027.
This deal follows Hahn & Co.’s acquisition of a controlling interest in SK Shipping in 2018 for 1.5 trillion won. Since then, SK Shipping has demonstrated significant improvement in its financial performance under Hahn & Co.’s ownership.
The company’s operating profit has increased substantially, rising from 73.3 billion won in 2018 to 395.7 billion won in 2024. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), a key indicator of cash flow generation, has seen a nearly 2.8-fold increase, growing from 231.7 billion won to 640.9 billion won over the same period.
Since acquiring SK Shipping, Hahn & Co. has strategically restructured the company’s portfolio, shifting focus away from the volatile spot market and towards more stable, long-term contracts. These long-term agreements generally ensure fixed margins above operating costs, providing more predictable revenue streams regardless of market fluctuations.
Furthermore, Hahn & Co. has successfully diversified SK Shipping’s customer base by securing contracts with global clients, including QatarEnergy, a leading global producer of liquefied natural gas. They have also expanded the fleet with environmentally conscious vessels.
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