South Korea's Korea Line Corp (KLC) is plotting fleet expansion after spinning off its LNG carrier business.
It has formed Korea Line LNG as a stand-alone company, the SM Group-owned operation said in a statement.
South Korean analysts said the move will allow it to grow the fleet by giving it a platform to boost its credit rating and stock price, and separate out its group debt facilities.
The new business will be up and running from 1 May.
It will focus on LNG transport and LNG bunkering with eight operational vessels and three newbuildings.
VesselsValue assesses the gas fleet as worth around $323m, against a total fleet value of $2.22bn for its 53 ships. The company also operates tankers and bulkers.
Revenue and profit down
KLC has two 174,000-cbm LNG carriers on order at Hyundai Heavy Industries for delivery in 2022.
According to the country's financial supervisory service, the company's revenue last year was KRW 1.6trn ($1.3bn), a 24.6% decrease from the previous year.
During the same period, operating profit also fell 9.9% to KRW 129.5bn.
TradeWinds reported in November that Korea Line had been unmasked as being behind an LNG bunker vessel (LNGBV) newbuilding booked at Hyundai Mipo Dockyard (HMD) after the shipowner secured a long-term charter with energy major Shell for the unit.
The KRW 71.5bn order was announced by the shipyard without naming the owner, but sources close to the business confirmed the contracting party and charterer to TradeWinds.
The 18,000-cbm LNGBV will be fitted with type-C tanks and is scheduled for delivery by early 2022. The deal includes an option for a second vessel.
SM Group also owns boxship line SM Line.
