MIRA INFORM REPORT

 

 

Report No. :

339390

Report Date :

07.09.2015

 

IDENTIFICATION DETAILS

 

Name :

PAN OCEAN CO., LTD.

 

 

Registered Office :

98, Huam-ro, Jung-gu, Seoul, Korea 04637, STX Namsan Tower

 

 

Country :

South Korea

 

 

Financials (as on) :

30.06.2015

 

 

Date of Incorporation :

28.05.1966

 

 

Com. Reg. No.:

104-81-19101

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Oceangoing Foreign Freight Transport

 

 

No. of Employees :

1,930

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Exist

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible economic growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies. A system of close government and business ties, including directed credit and import restrictions, initially made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model, including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 7% in 1998, and then recovered by 9% in 1999-2000. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced slow growth due to sluggish domestic consumption and investment. The administration in 2015 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long-term challenges include a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and the heavy reliance on exports, which comprise about half of GDP. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 


Basic Information

 

Company Name

PAN OCEAN CO., LTD.

(Ex. Company Name : STX PAN OCEAN CO., LTD., “STX팬오션()”)

(Korean Company Name : “팬오션()”)

Registered Address

98, Huam-ro, Jung-gu, Seoul, Korea

Building

STX Namsan Tower

Zip Code

04637

Tel

+82-2- 316-5114

Fax

+82-2- 316-5296

E-mail

panocean@stxpanocean.com;btf@stxpanocean.com

Website

www.panocean.com

Trading Address

STX Namsan Tower, 98, Huam-ro, Jung-gu, Seoul, Korea

(Old Address System : STX Namsan Tower, 631 Namdaemunno 5-ga, Jung-gu, Seoul, Korea)

Tel

+82-2- 316-5114

Fax

+82-2- 316-5296

Other Address-Hanbada Training Center

410-1, Goseong-ri, Cheongpyeong-myeon, Gapyeong-gun, Gyeonggi-do, Korea

Tel

+82-31-585-6211

Fax

 

Other Address-Incheon Office

13-5, Sa-dong, Chung-gu, Incheon 400-060, Korea

Tel

+82-32- 770-1860

Fax

+82-32- 762-2336

Other Address-Pohang Office

49-1, Jukdo-dong, Pohang 791-052, Korea

Tel

+82-54- 272-7341

Fax

+82-54- 273-9658

Other Address-Busan Office

3FL. Heungwoo Bldg, 89-2, 4-k9, Jungang-dong, Jung-gu, Busan, Korea

Tel

+82-51-461-2114

Fax

+82-51-461-2050

Type

Export/Import

Industry

Oceangoing Foreign Freight Transport

  Main Business

Marine Cargo Transport

  Sub Business

 

Established (mm/dd/yyyy)

05/28/1966

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Transport arrangements(78141500)

Sell

International trade services(80151600)

Sell

Freight forwarders services(78141501)

 

CEO’s

 

Name

Kim Hong-Kook

Address

14, Mangseong-ro, Mangseong-myeon, Iksan-si, Jeollabuk-do, Korea

Date of Birth

06/27/1957

Title

Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

522,919,935,000

Employees

1,930

Formation

Listed Company (Korea Stock Exchange: 028670) as of 09/22/2007

Listed Company at Singapore Exchange(SIN:V33) in 07/2005

A Company of STX Group

Bank Details

Korea Development Bank

Woori Bank

Corporate Registered No.

110111-0004286

Business Registered No.

104-81-19101

Permit & Licenses

ISO 9002

 

Int’l Trade No.: 820314

Shareholder Position

Name

Shares

%

JEIL HOLDINGS CO., LTD.(160111-0003931)

272,000,000

52.02

POSEIDON 2014 LLC(110114-0155819)

68,000,000

13.00

KOREA DEVELOPMENT BANK(110135-0000937)

22,833,591

4.37

OTHERS

160,086,344

30.61

TOTAL

522,919,935

100.00

Company History

05/28/1966 Incorporated as Pan Ocean Bulk Carriers Ltd.(POBC)

04/1984 Changed company name to Pan Ocean Shipping Co. Ltd.(POSC)

10/21/1992 Decide to Corporate Restructuring Procedure by the Court

11/05/1993 Approved on The Plan for Corporate Restructuring

02/06/2002 Approved on the Revised Plan for Corporate Restructuring

05/21/2002 Finished the Corporate Restructuring Procedure

11/28/2004 Changed company name to STX PAN OCEAN CO., LTD.

05/20/2005 Split the par value to 100 KRW from 5,000 KRW and increased the authorized shares to 3,000,000,000 shares from 60,000,000 shares

07/14/2005 Listed at Singapore Stock Exchange

05/2007 Moved to the present HQ address from 163, Sinmunno 1-ga, Jongno-gu, Seoul, Korea

12/04/2008 Increased the par value to 1,000 KRW from 100 KRW

12/2008 Merged the par value to 1,000 KRW from 100 KRW

06/17/2013 Started Corporate Reviving Procedure(2013HOIHAP110) by the order of Seoul Central District Court

11/22/2013 Increased the authorized shares to 3,000,000,000 shares from 700,000,000 shares

11/22/2013 Approved of Corporate Reviving Plan(2013HOIHAP110) from Seoul Central District Court

11/22/2013 Changed company name to the present name

02/12/2015 Agreed with Harim Group-JKL Consortium for Investment

04/01/2015 Increased capital to 228,560,885,000 KRW from 227,803,041,000 KRW

04/21/2015 Submitted Revised Corporate Reviving Plan to Seoul Central District Court

06/12/2015 Approved of Revised Corporate Reviving Plan by Seoul Central District Court

06/19/2015 Decreased capital to 182,401,146,000 KRW from 228,560,885,000 KRW

06/20/2015 Increased capital to 522,401,146,000 KRW from 182,401,146,000 KRW

07/01/2015 Increased capital to 522,919,935,000 KRW from 522,401,146,000 KRW

07/21/2015 Applied for finishing Corporate Reviving Procedure(2013HOIHAP110) to Seoul Central District Court

07/30/2015 Finish Corporate Reviving Procedure(2013HOIHAP110) by the decision of Seoul Central District Court

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

Chairman & CEO

Mr.

Kim Hong-Kook

Male

Korean

07/18/2015

President & CEO

Mr.

Choo Sung-Yeob

Male

Korean

07/18/2015

Director

Mr.

Cheon Se-Ki

Male

Korean

07/18/2015

Outside Director / Auditor

Mr.

Choi Seung-Hwan

Male

Korean

07/18/2015

Outside Director / Auditor

Mr.

Shin Jung-Sik

Male

Korean

07/18/2015

Outside Director

Mr.

Christopher Anand Daniel

Male

Singaporean

07/18/2015

Auditor

Mr.

Jang Yoo-Hwan

Male

Korean

07/29/2015

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)06/2015

792,192,000,000

4,469,223,000,000

-49,861,000,000

(*)2014

1,555,024,000,000

4,439,432,000,000

809,869,000,000

(*)2013

2,428,186,000,000

4,639,640,000,000

- 2,052,601,000,000

(*)2012

4,919,476,000,000

6,652,610,000,000

-456,645,000,000

(*)2011

5,059,026,000,000

6,354,050,000,000

-4,408,000,000

(*)2010

5,768,938,000,000

5,655,684,000,000

109,742,000,000

(*)2009

3,989,252,000,000

4,991,914,000,000

-27,627,000,000

2008

8,509,147,000,000

4,346,951,000,000

534,795,000,000

2007

4,873,448,967,879

2,939,591,081,740

430,990,879,458

2006

2,784,415,707,034

1,480,695,231,250

101,691,552,812

2005

2,792,431,586,233

1,319,306,091,067

263,539,665,825

2004

2,586,253,377,655

1,034,805,864,206

211,443,472,580

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

3,000,000,000,000

Paid-Up Capital(KRW)

522,919,935,000

Total Issues Shares

522,919,935

 

Balance Sheet

Unit : Million Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

4,469,223

4,439,432

4,639,640

Current Assets

879,215

855,625

620,135

Cash & Cash Equivalents

590,207

363,688

130,480

Trade Receivables

63,522

78,685

163,156

Other Receivables

23,041

25,120

29,088

Derivatives

13,385

189,728

262

Current Financial Instruments

1,058

2,636

7,481

Inventories

50,147

59,042

81,891

Other Current Assets

134,877

136,518

173,649

Assets to be Sold

2,978

208

34,128

Non-Current Assets

3,590,008

3,583,807

4,019,505

Long-Term Trade Receivables

136

133

123

Other Long-Term Receivables

27,463

18,524

18,024

Non-Current Financial Instruments

16,079

21,483

22,403

Investment_Subsidiaries

46,411

45,383

45,848

Investment_Related Companies

1,684

7,426

7,085

Tangibles

3,486,745

3,473,561

3,910,708

Intangibles

5,075

5,068

5,353

Other Non-Current Assets

6,415

12,229

9,961

Total Liabilities

2,336,218

3,044,423

4,455,517

Current Liabilities

488,406

705,975

784,864

Trade Payables

54,978

84,457

128,744

Other Payables

254,136

247,003

322,490

Current Reviving Debts

47,060

0

80,028

Derivatives

22,027

195,298

277

Other Current Liabilities

34,759

80,763

66,200

Provisions

998

1,732

2,072

Other Debts

74,448

96,722

164,769

Liabilities to be Sold

0

0

20,284

Non-Current Liabilities

1,847,812

2,338,448

3,670,653

Long-Term Borrowings

1,569,103

1,492,983

1,807,967

Non-Current Reviving Debts

0

579,997

351,741

Derivatives

362

422

715

Provisions

266,597

251,059

1,497,165

Provision for Severance & Retirement

11,750

13,110

12,649

Other Non-Current Liabilities

0

877

416

Capital Stock

522,401

214,539

120,888

Capital Surplus

680,481

149,597

0

Others

1,347,057

1,397,933

1,239,083

Profit Surplus

-416,934

-367,060

-1,175,848

Total Equity

2,133,005

1,395,009

184,123

Liab. & Shareholder’s Equity

4,469,223

4,439,432

4,639,640

 

Income Statement

Unit : Million Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

792,192

1,555,024

2,428,186

Cost of Sold Goods

659,021

1,302,799

2,546,209

Gross Profit

133,171

252,225

-118,023

Selling & Admin. Expenses

21,490

37,619

212,373

Operating Income

111,681

214,606

-330,396

Finance Income

6,726

5,117

33,377

Finance Expenses

42,172

110,942

174,035

Other Profits

-399

-5,186

84,811

Non-Operating Profits

-125,697

706,274

-1,547,369

Income Before Taxes

-49,861

809,869

-1,933,612

Income Taxes Expenses

0

0

-118,989

Net Income

-49,861

809,869

-2,052,601

 

Cash Flows

Unit : Million Korean Won

01/01/2015~06/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

231,309

408,031

214,050

Cash Flows from Operating

260,366

482,017

379,418

Interests Paid

-28,389

-74,292

-169,324

Income Taxes

-668

306

3,956

Cash Flows from Investing

6,764

297,201

89,026

Cash Flows from Financing

-21,264

-486,204

-331,641

Increase/Decrease in Cash

226,519

233,208

-29,382

Cash at the Beginning of Year

363,688

130,480

159,862

Cash at the End of Year

590,207

363,688

130,480

 

Products, Technologies, Services Description

 

Main Products & Services

Tramper Services-Grain, Sugar, Logs, Fertilizer, Scraps, Minerals & Other bulk cargoes

Breakbulk Liner Services

Container Services

Specialized Services

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

STX CORPORATION(194211-0000183)

STX OFFSHORE & SHIPBUILDING CO., LTD.(180111-0002814)

HANJIN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD.( 180111-0602507)

NAKANISHI KIKAI KOGYOSHO

Customers

KOREA WESTERN POWER CO., LTD(110111-2207177)

KOREA MIDLAND POWER CO., LTD.(110111-2207193)

KOREA SOUTHERN POWER CO., LTD.(110111-2207135)

POSCO(174611-0000741)

GLOVIS CO., LTD(110111-2177388)

Competitors

SINOKOR MERCHANT MARINE CO., LTD.

RM. 301, DONGSEONG BLDG., 17-7, NAMDAEMUNNO 4-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-6496-2244  FAX:+82-2-6496-2271

 

SUNWOO MERCHANT MARINE CO. LTD.

12TH FL., KYOBO BOOK CENTRE BLDG., 73, NAESU-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-732-2777  FAX:+82-2-732-2775

 

CHANG MYUNG SHIPPING CO., LTD.

RM. 915, GWANGHWAMUN OFFICIA, 163, SINMUNNO 1-GA, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-757-7700  FAX:+82-2-737-0330

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

STX PAN OCEAN (AMERICA) INC.

(100.0% held by the subject company)

 

PAN OCEAN SINGAPORE BULK CARRIER PTE. LTD.

(100.0% held by the subject company)

 

STX PAN OCEAN (U.K.) CO., LTD.

(100.0% held by the subject company)

 

PAN OCEAN (CHINA) CO., LTD.

(100.0% held by the subject company)

 

PAN OCEAN JAPAN CORPORATION\

(100.0% held by the subject company)

 

PAN OCEAN BRASIL APOIO MARITIMO LTDA.

(100.0% held by the subject company)

 

STX GULF SHIPPING DMCCO

(99.10% held by the subject company)

 

SEA BEST MARITIME LIMITED

(50.0% held by the subject company)

 

KOREA LNG TRADING CO.,LTD.(131111-0157014)

(18.0% held by the subject company)

 

BUSAN CROSSDOCK CO., LTD.(180111-0611293)

(20.0% held by the subject company)

 

YEGRINA CO., LTD.(194211-0193649)

(44.0% held by the subject company)

 

GWANGYANG WEST CONTAINER TERMINAL CO.,LTD.(110111-3547514)

(80.0% held by the subject company)

 

TAEYOUNG GRAIN TERMINAL CO., LTD.(134111-0136304)

(7.0% held by the subject company)

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

SEA BEST MARITIME LTD.(CHINA)

(50.0% held by the subject company)

Subsidiary

PAN OCEAN SINGAPORE BULK CARRIER PTE. LTD.

40F. 8 SHENTON WAY, #40-03, TEMASEK TOWER, SINGAPORE 068811

 

STX GULF SHIPPING DMCCO

2NDFLOOR OFFICE NO.201, SHARAF TRAVEL BUILDING, KHALID BIN AL WALEED STREET, DUBAI, U.A.E.

 

PAN OCEAN (CHINA) CO., LTD.

ROOM 2004, WEST BLDG, SHANGHAI ZHONG RONG HENGURI INTERNATIONAL PLAZA, NO.560 ZHONGYANG ROAD, PUDONG DISTRICT, SHANGHAI, P.R.C.

 

PAN OCEAN INTERNATIONAL LOGISTICS CO., LTD.

FL26, HUA YIN PLAZA, NO.5 DONGHAI WEST ROAD, QINGDAO, CHINA

 

PAN OCEAN-SINOTRANS LOGISTICS CO., LTD.

ROOM 704-706 NO.80 QUFU ROAD TIANJIN ,CHINA, POST CODE : 300042

 

QINGDAO STX-KEYUN LOGISTICS CO., LTD.

NO. 376, MOHE ROAD, ECONOMY TECHNOLOGY DEVELOPMENT AREA, QINGDAO, CHINA

 

PAN OCEAN JAPAN CORPORATION

5TH FLOOR 1-CHOME MORI BUILDING 1-19-5, TORANOMON,MINATO-KU, TOKYO, JAPAN

 

PAN LOGIX CO., LTD.

SHOEI TORANOMON 2 BLDG 2 FLOOR, 1-20-7, TORANOMON, MINATO-KU, TOKYO, JAPAN

 

PAN OCEAN CONTAINER (JAPAN) CO., LTD.

5TH FLOOR 1-CHOME MORI BUILDING 1-19-5, TORANOMON, MINATO-KU, TOKYO, JAPAN

 

STX PAN OCEAN (U.K.) CO., LTD.

8TH FLOOR ST MAGNUS, HOUSE 3 LOWER THAMES, STREET LONDON, UK

 

WORLD D&F INVESTMENT (UK) CO. LIMITED

8TH FLOOR ST MAGNUS HOUSE, 3 LOWER THAMES STREET, LONDON, EC3R 6HE, U.K

 

STX PAN OCEAN (AMERICA) INC.

201 ROUTE 17 NORTH, 6TH FL RUTHERFORD, NEW JERSEY 07070 U.S.A.

 

PAN OCEAN BRASIL APOIO MARITIMO LTDA.

RUA CUBATAO, Nº86, CONJUNTOS 408 E 410, VILA MARIANA, SAO PAULO, BRAZIL

 

POS MARITIME GX S.A.

53RD E STREET, URBANIZATION MARBELLA, MMG TOWER, 16TH FLOOR, PANAMA, THE REPUBLIC OF PANAMA

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

 

 

Sales by Region (Activity & Markets)

 

The subject provides services to Asia, Oceania, Europe, North & South America and Africa.

 

 

Court Action

 

There are 52 cases filed as Defendant(s)/ Debtor(s)/ Respondent(s) amounting USD 21,883,000, and 19 cases filed as Plaintiff(s)/ Creditor(s)/ Applicant(s) amounting USD 63,108,000as of 06/30/2015.

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.40

UK Pound

1

Rs.101.19

Euro

1

Rs.73.89

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

TPT

 

               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

NB

New Business

--

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.