Daewoo Shipbuilding Posts Operating Profit of 153.4 Billion KRW Last Year... Four Consecutive Years of Profitability

Daewoo Shipbuilding & Marine Engineering is conducting Ship To Ship LNG Loading, supplying liquefied natural gas to an LNG carrier under construction.

[Asia Economy Reporter Choi Dae-yeol] Daewoo Shipbuilding & Marine Engineering announced on the 10th that its provisional operating profit on a consolidated basis for last year was 153.4 billion KRW. Although this is about half compared to the previous year, the company recorded profits for four consecutive years since 2017. Last year's sales were recorded at 7.03 trillion KRW, down about 16% during the same period. Net profit turned positive at 86.6 billion KRW.

The company explained that the operating profit last year was thanks to securing profits from large offshore products and ships. However, due to the deterioration of the shipbuilding market caused by COVID-19 and sluggish new orders, both sales and profit scales decreased. In the fourth quarter of last year, losses reached 230 billion KRW due to increased fixed costs burden from exchange rate declines and failure to meet the annual order target.

Considering the characteristics of the shipbuilding industry, the contraction last year is expected to affect this year as well, but there are also positive signs such as market improvement. The company stated, "With the development of COVID-19 vaccines, cargo volume is expected to increase, and recently ship contracts, especially for container ships, have been increasing," adding, "Orders for liquefied natural gas (LNG) powered ships are also increasing due to environmental regulations."

The company is carrying out cost reduction activities involving all employees to overcome short-term difficulties below normal operations this year. A company official said, "Although difficult conditions will continue for the time being, we will focus our capabilities on achieving the order target of 7.7 billion USD."

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