Samsung Heavy Industries Q1 Operating Loss of 94.9 Billion KRW... Deficit Size Reduced

Operating Loss Improved by 81% Compared to Same Period Last Year

[Asia Economy Reporter Jang Sehee] Samsung Heavy Industries announced on the 29th that its preliminary operating loss for the first quarter of this year improved by 81.3% compared to the same period last year, amounting to 94.9 billion KRW. Sales decreased by 20% during the same period, totaling 1.4838 trillion KRW.

Samsung Heavy Industries explained that sales in the marine division decreased compared to the first quarter of last year, but from the second quarter onward, the construction of ships ordered since the second half of 2020 is expected to accelerate, and the construction of the semiconductor plant in Pyeongtaek, Jeonja, will be added, leading to a growth trend.

Regarding operating profit, in the first quarter, a profit of 57 billion KRW was generated from the settlement of change orders for the Coral Floating Liquefied Natural Gas (FLNG) production facility, but due to the rise in raw material prices caused by the Ukraine crisis, an increase in costs amounting to 80 billion KRW was preemptively reflected.

Samsung Heavy Industries stated, "Following last year, the strong trend in orders for LNG carriers and container ships continues this year," and added, "We will strengthen profitability-focused orders based on a solid order backlog."

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