KB News Desk
Hanwha Ocean said Monday its second-quarter operating profit nearly doubled from a year earlier, driven by the ramp-up of liquefied natural gas carriers and other large projects, as well as a major revenue contribution from the delivery of an offshore project.
The South Korean shipbuilder posted an operating profit of 736.1 billion won ($500.6 million) for the April-June period, up 98 percent from a year earlier, according to a regulatory filing.
Revenue surged 65.2 percent to 5.44 trillion won, while net profit jumped 366.4 percent to 692.6 billion won.
For the first half of the year, revenue rose 34 percent to 8.65 trillion won, while operating profit increased 87 percent to 1.18 trillion won.
Hanwha Ocean attributed the strong revenue to stable production, improved operational efficiency and a rise in the number of vessels built, including high-margin LNG carriers. It also noted that completing an offshore project added roughly 1.5 trillion won to the quarter’s revenue.
The company’s profitability also rose, supported by higher vessel prices and favorable currency movements, along with reduced material cost and gains in productivity.
As of the end of June, Hanwha Ocean has secured orders worth $4.35 billion this year. The total included six LNG carriers, 15 very large crude carriers, three very large ammonia carriers and one wind turbine installation vessel.
Hanwha Ocean said it expects to maintain solid earnings in the second half, supported by continued growth in its commercial and naval shipbuilding divisions.
Regarding its unsuccessful bid for Canada’s multibillion-dollar submarine contract, which went to Germany’s Thyssenkrupp Marine Systems, Hanwha Ocean said the bidding process had nevertheless demonstrated the competitiveness of its submarine technology.
“The outcome doesn’t simply mean failure,” Hanwha Ocean Chief Financial Officer Jang Yeon-sung said during a conference call on Monday. “It showed that the technological capabilities of a submarine we developed and built can compete on the global stage.”
Jang said the company will use the capabilities and expertise accumulated through preparing its Canadian bid to pursue new opportunities in Greece, Thailand, the Middle East and South America.
