LS Marine Solutions significantly increased its operating profit in the third quarter, driven by the expansion of its overseas submarine cable business and improvements in construction efficiency. Although revenue slightly decreased, profitability improved, resulting in the highest cumulative operating profit on record for the third quarter.
On October 21, LS Marine Solutions announced that its consolidated revenue for the third quarter reached 73.6 billion won, with an operating profit of 6.9 billion won and a net profit of 6.2 billion won.
Revenue fell by 4.3% compared to 77 billion won in the same period last year. However, operating profit surged by 235%, rising from 2.1 billion won to 6.9 billion won. Cumulative revenue for the third quarter totaled 221.9 billion won, with an operating profit of 17.2 billion won.
The improvement in profitability was influenced by the expansion of overseas operations, including the installation of submarine cables for the Taiwan Power Company’s offshore wind farm and projects for submarine communication cables in the Asia-Pacific region. The subsidiary LS Buildwin also enhanced construction efficiency for submarine and underground cable projects in Asia and the Middle East.
Notably, this quarter's operating profit more than tripled despite a decline in revenue, highlighting a significant improvement in profitability over mere growth in size.
The decrease in revenue was attributed to the cable laying vessel 'GL2030' being unavailable for projects due to expansion work. The GL2030 is expected to begin operations for a project in Malaysia later this month.
The company has a backlog of approximately 820 billion won, which is 3.4 times last year's total annual revenue of 244.2 billion won. As major projects like the Sinan Uwi and Taean offshore wind farms progress sequentially, revenue recognition is expected to increase in the future.
LS Marine Solutions plans to pursue contracts for large power grid projects both domestically and internationally, including the HVDC energy highway project along the west coast.
* This article has been translated by AI.
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