The shipbuilder said in a regulatory filing on Monday that its consolidated operating profit rose 70.6 percent year-on-year to 441.1 billion won ($300 million) in the January–March period. The figure exceeded the market consensus of 375 billion won by 17.6 percent.
Revenue came in at 3.21 trillion won, up 2.1 percent from a year earlier, but down 3.4 percent from the previous quarter due to fewer working days. Net profit surged 131.8 percent year-on-year to 500 billion won. As of the end of March, net borrowings stood at 5.07 trillion won, up 212.5 billion won from the end of last year.
The strong performance was driven by a higher share of high-priced orders, along with cost cuts and improved productivity. The share of lower-priced LNG carriers ordered in 2022 declined, while more high-priced vessels ordered in 2024–2025 were delivered, helping boost margins.
Improved productivity also allowed some vessels to be delivered earlier than planned, bringing forward profits. Since a large portion of payments is made upon delivery, this further supported earnings from high-value ships.
Favorable foreign exchange rates also supported earnings. As most shipbuilding contracts are denominated in U.S. dollars, a weaker won increases revenue and profit when converted into local currency.
The average exchange rate rose from around 1,330 won per dollar at the time of order to 1,464 won in the first quarter. Analysts estimated that FX effects alone added about 44 billion won in revenue and 15 billion won in operating profit.
Hanwha Ocean expects earnings to continue improving as more high-value ship projects are delivered. Demand for LNG carriers and very large crude carriers (VLCCs) is also expected to remain strong.
So far this year, the company has secured orders worth $2.45 billion, including four LNG carriers, 10 VLCCs and one wind turbine installation vessel (WTIV). In the special ship segment, key projects include Canada’s submarine program (CPSP), a roughly $40 billion bid to replace its aging fleet, and South Korea’s next-generation destroyer project (KDDX), a project to build six advanced Aegis destroyers by 2036.
“We aim to contribute to national security by leveraging our shipbuilding and engineering expertise,” the company said. “We will also keep seeking new orders in offshore and energy projects, including FPSOs and FLNGs.”
Hanwha Ocean shares closed at 133,500 won on Monday, down 1.04 percent from a day earlier despite strong earnings, after trading between 131,700 won and 137,500 won.
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