STX Pan Ocean Co. reported a first-quarter net income of $18.3 million compared to the net loss of US$70 million for the corresponding period of 1Q 09.according to a statement the company sent to the Singapore stock exchange today.

The Korean bulk shipper achieved sales of US$1,163 million for the first quarter ended 2010 (1Q 10), an increase of US$394 million, or 51%, compared to the corresponding period last year (1Q 09).

This was mainly due to the better market situation compared to the last corresponding period. Average BDI (Baltic Dry Index) was increased from 1,562 points for 1Q 09 to 3,027 points for 1Q 10 and it affects to make the freight rates go up compared to the corresponding period. In addition, the trading volume also increased from 21.3 million tonnes to 25.8 million tonnes by 21%.

The group‟s large bulk service, which mainly operates Cape size and Panamax size bulk carriers, contributed US$503 million to sales during 1Q 10, implying an increase of 68% from US$ 300 million in 1Q 09. The increased sales of large bulk service were mainly driven by the rise in freight rates and increased transportation of 12.2 million tons of cargo in 1Q 10.

Sales from tramper service of the group increased by 56% from US$221 million in 1Q 09 to US$344 million in 1Q 10, mainly due to the 72% increase in trading volume from 4.3 million tons to 7.3 million tons.

Breakbulk liner service of the group, which operates on relatively designated ocean routes as compared to tramper service and large bulk service, recorded US$145 million of sales during 1Q 10, representing a 58% increase. This was mainly due to an increase in freight rates as well as the increase in trading volume.

In the non-dry bulk service segments, sales from the container service increased to US$151 million, compared to US$83 million in 1Q 09, primarily due to increase in cargo volume and freight rates with the revival of commodity market.

Sales from the group‟s tanker service increased 13% to US$97 million, from US$85 million in 1Q 09 with a increased cargo volume and freight rates.

Sales from Pure Car and Truck Carrier (“PCTC”) service decreased 27% from 1Q 09, to US$6 million as a result of decrease in trading volume. Sales from LNG service recorded US$11 million in 1Q 10, an increase of US$7million mainly due to the increased trading volume.