The company said Tuesday that its consolidated operating profit reached 485.7 billion won ($363.5 million) in the July-September period, up from 289.8 billion won a year earlier.
Revenue rose 12.9 percent to 3.41 trillion won, while net profit fell 46.1 percent to 145.1 billion won. Its operating profit margin improved to 14.2 percent from 9.6 percent a year earlier.
Compared with the previous quarter, however, revenue declined 37.3 percent and operating profit fell 34 percent, reflecting fewer working days during summer holidays, foreign exchange fluctuations and the absence of one-off revenue recognized in the second quarter.
Hanwha Ocean expects the profitability of commercial shipbuilding to remain relatively strong as more high-margin projects secured since 2024 enter production, even as the construction mix shifts toward very large crude carriers (VLCCs) and container ships.
During Tuesday's earnings conference call, the company said it had secured approximately three years' worth of commercial shipbuilding orders and achieved about 80 percent of its annual commercial vessel order target of $8 billion.
"We will not lower prices or aggressively pursue orders simply to fill our backlog," a company official said, adding that sufficient projects remain under discussion for the rest of the year.
As of the end of September, Hanwha Ocean had secured $7.72 billion in new orders across its businesses, including eight LNG carriers, 18 tankers, six container ships and six ammonia and LPG carriers.
In contrast, its naval shipbuilding division recorded an operating loss of 70.6 billion won, compared with a loss of 2.9 billion won in the previous quarter.
Naval shipbuilding revenue increased 11 percent quarter-on-quarter to 363 billion won, but higher fixed costs and increased estimated costs for certain projects weighed on profitability.
The company said it would seek to improve earnings by accelerating construction of the second Jangbogo-III Batch-II submarine and the fifth and sixth Ulsan-class Batch-III frigates, while pursuing cost reductions and additional contract adjustments.
The energy plant division, meanwhile, posted operating profit of 91.4 billion won on revenue of 527.5 billion won, benefiting from additional payments for changes to a floating production, storage and offloading (FPSO) project and drillship charter income.
During the conference call, the company said it had established a dedicated organization, the Jangbogo N Development Division, to prepare for South Korea's nuclear-powered submarine program.
The team will focus on recruiting specialized personnel and strengthening technical capabilities, building on the company's existing submarine development and construction experience.
Hanwha Ocean also aims to finalize a frigate contract with Thailand before the end of this year and pursue offshore patrol vessel projects in Estonia and Greece next year.
In the United States, the company is seeking to expand its presence through Hanwha Philly Shipyard, although it acknowledged that the investment has yet to deliver direct earnings benefits.
"The investment has secured a production base that allows us to enter the U.S. shipbuilding market directly," a company official said during the conference call.
Hanwha Ocean said the facility could support future commercial, government and naval shipbuilding projects, including a potential strategy of building an initial vessel at its Geoje shipyard in South Korea before shifting subsequent production to the United States.
Nine vessel projects are currently underway at the Philadelphia facility, according to the company.
Looking ahead, Hanwha Ocean warned that one-off expenses, including wage settlement payments and annual performance bonuses, could weigh on fourth-quarter profitability.
The company said it was also expanding foreign exchange hedging to reduce earnings volatility, while continuing to pursue higher-margin commercial vessel orders and improvements in its naval and offshore businesses.
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