Hanwha Ocean reported a 68% increase in operating profit for the third quarter of this year, driven by an expansion in high-priced shipbuilding orders. However, the company noted a slowdown in performance compared to the previous quarter due to a decrease in working days and exchange rate impacts.
On October 27, Hanwha Ocean announced that it recorded a revenue of 3.4139 trillion won and an operating profit of 485.7 billion won for the third quarter. These figures represent increases of 13% and 68%, respectively, compared to the same period last year.
For the cumulative revenue in the third quarter, the company reported 12.67 trillion won and an operating profit of 1.6629 trillion won, marking increases of 28% and 81% year-on-year.
The revenue decline compared to the previous quarter was attributed to a temporary revenue recognition effect from the delivery of marine projects, fewer working days due to summer vacations and the Chuseok holiday, and exchange rate influences. Nonetheless, the company maintained growth compared to the previous year, supported by high-priced LNG carrier orders and stable progress in submarine and surface ship projects.
Operating profit also remained robust, bolstered by high-priced shipbuilding orders despite the impacts of fewer working days and exchange rates.
As of the end of September, Hanwha Ocean secured orders worth $7.72 billion, including eight LNG carriers, six container ships, 18 very large crude carriers (VLCCs), three very large ammonia carriers (VLACs), three very large LPG carriers (VLGCs), and one wind turbine installation vessel (WTIV).
Looking ahead to the fourth quarter, the company anticipates a potential decline in profitability due to one-time costs such as settlement payments and annual performance bonuses.
In this regard, Hanwha Ocean stated, "Since June, we have expanded foreign exchange hedging to mitigate the impact of exchange rate fluctuations on profits and losses. The commercial ship division aims to maintain profitability based on high-priced order backlogs and cost reduction effects, while the special ship division plans to expand revenue through expedited construction processes for submarines and surface ships."
* This article has been translated by AI.
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