South Korea’s largest private equity firm Hahn & Company said its portfolio company SK Shipping has agreed to sell its Korea wet tanker business to Pan Ocean for 974 billion won ($668 million).
The unit comprises 10 crude tankers operating under long-term contracts to import crude oil into South Korea, according to an announcement on Thursday.
Hahn & Co. acquired SK Shipping in 2018 and has since turned the previously unprofitable company into one of the world’s most profitable transportation companies by focusing on secured, long-term contracts while scaling back exposure to spot-market operations, where freight rates fluctuate sharply based on market conditions.
Under Hahn & Co.’s ownership, SK Shipping’s EBITDA and EBIT increased from 232 billion won ($174 million) and 73 billion won ($55 million), respectively, to 641 billion won ($481 million) and 396 billion won ($297 million), with EBITDA margins rising to more than 32%, among the highest globally in the shipping sector.
The company has also broadened its customer base beyond captive group clients to include global energy companies and other major Korean conglomerates.
Companies controlled by Hahn & Co. generate revenues in excess of 23 trillion won ($15.8 billion) with assets of 42 trillion won ($28.8 billion) and over 37,000 employees.
