South Korea’s Top Shipbuilders Post Strong Q3 Profits Amid Challenges

Amid adverse factors such as exchange rate declines, reduced working days, and labor-management conflicts, South Korea’s three major shipbuilders achieved relatively robust performance in the third quarter of this year. Samsung Heavy Industries announced on the 29th that its operating profit for the quarter increased by 42% compared to the same period last year. Combined, the operating profits of the three shipbuilders—HD Korea Shipbuilding & Offshore Engineering and Hanwha Ocean—totaled 2.2713 trillion Korean won. This is attributed to continued revenue from high-value-added vessels, such as liquefied natural gas (LNG) carriers, which were contracted at higher prices in the past, partially offsetting cost burdens.

Samsung Heavy Industries reported third-quarter revenue of 3.1504 trillion Korean won and operating profit of 338.4 billion Korean won, marking year-on-year increases of 19.6% and 42.1%, respectively. Although revenue decreased by 2.5% from the previous quarter due to reduced working days caused by summer vacations and the Chuseok holiday, operating profit rose by 4.1%. The operating margin reached 10.7%. Cumulative operating profit for the first three quarters of the year stood at 936.5 billion Korean won.

HD Korea Shipbuilding & Offshore Engineering, which disclosed its results on the 28th, saw its third-quarter operating profit surge by 37.3% year-on-year to 1.4472 trillion Korean won. Its cumulative operating profit for the year reached 4.4483 trillion Korean won, surpassing the record annual operating profit of 3.9045 trillion Korean won set last year within just three quarters. Hanwha Ocean also reported on the 27th that its third-quarter operating profit increased by 67.6% year-on-year to 485.7 billion Korean won.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →