SEOUL, January 07 (AJP) - South Korea’s three major shipbuilders are expected to post profits for a second consecutive year, with momentum likely to carry into 2026 as demand for high-value, eco-friendly vessels remains strong, analysts said.
Expectations have also risen that orders for liquefied natural gas (LNG) carriers and special-purpose ships could flow to Korean yards as the South Korea-U.S. shipbuilding cooperation initiative known as MASGA moves into full operation.
According to consensus data compiled by financial information provider FnGuide, the combined operating profit of HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean and Samsung Heavy Industries is estimated at 6.18 trillion won ($4.7 billion) for 2025.
HD Korea Shipbuilding & Offshore Engineering is projected to generate operating profit of 4 trillion won. Hanwha Ocean is forecast to post 1.32 trillion won, while Samsung Heavy Industries is expected to earn about 871 billion won.
All three companies met their annual order targets last year, returning to profitability and improving margins after a prolonged downturn that began in the mid-2010s. Analysts attribute the turnaround to a strategy of selectively securing high-value contracts, particularly for LNG carriers, alongside improvements in cost structures.
That trend is expected to persist this year.
"With MASGA moving into a full-scale phase, LNG carrier orders are expected to increasingly concentrate at Korean shipyards," an industry source said.
Market sentiment has also been supported by remarks from U.S. President Donald Trump about working with South Korean companies on building new frigates for the U.S. Navy. Naval and special-purpose vessels are widely viewed as having higher technological barriers and more stable profitability than commercial ships.
An expansion of orders in defense and special-purpose vessels, alongside LNG carriers, would further diversify shipbuilders’ order books, analysts said.
Order targets for this year reflect that confidence.
HD Korea Shipbuilding & Offshore Engineering has set an annual order target of $23.31 billion for its shipbuilding and offshore businesses, about 29 percent higher than last year’s goal. The company said it will continue to focus on high-value projects, including LNG carriers, eco-friendly vessels and offshore plants.
Hanwha Ocean and Samsung Heavy Industries, which both met their targets last year, have also signaled plans to maintain steady order intake centered on LNG carriers and offshore projects.
A persistently weak won is expected to further support earnings, as most shipbuilding contracts are denominated in U.S. dollars.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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