Daewoo Shipbuilding & Marine Engineering, Operating Profit in the Black for 3 Consecutive Years

[Asia Economy Reporter Park So-yeon]Daewoo Shipbuilding & Marine Engineering recorded operating profit for three consecutive years.

Daewoo Shipbuilding & Marine Engineering announced on the 10th that it posted sales of 8.3587 trillion KRW and operating profit of 292.8 billion KRW (consolidated basis) in 2019. These figures represent decreases of 13.3% and 71.4%, respectively, compared to the same period last year.

Last year's profit margin declined compared to the previous year due to provisions set aside for increased fixed cost burdens following sluggish orders. However, considering the domestic and international industry realities such as the global decline in ship orders and delayed recovery of ship prices, last year's performance is evaluated as relatively resilient.

Additionally, total liabilities decreased by 557.1 billion KRW, including a reduction of 251.1 billion KRW in borrowings compared to the end of 2018, lowering the debt ratio from 210% at the end of 2018 to 200%, thereby improving the overall financial condition.

However, the reason for the net loss turnaround was due to the results of shareholder damage compensation lawsuits, including a first trial verdict last month, which led to additional provisions being set for ongoing lawsuits.

A Daewoo Shipbuilding & Marine Engineering official stated, "With increasing uncertainties in the domestic and international economy, difficult conditions are expected to continue for the time being. We will do our best to improve performance through orders of various ship types such as LNG carriers, ultra-large crude oil carriers, ultra-large LPG carriers, and shuttle tankers, as well as extreme cost reduction activities."

This content was produced with the assistance of AI translation services.