Daewoo Shipbuilding & Marine Engineering, Q1 Sales of 1.2455 Trillion KRW and Operating Loss of 470.1 Billion KRW

[Asia Economy Reporter Jeong Dong-hoon] Daewoo Shipbuilding & Marine Engineering announced on the 16th that it recorded sales of 1.2455 trillion KRW and an operating loss of 470.1 billion KRW for the first quarter on a consolidated basis this year.

During the same period, the net loss was 491.8 billion KRW. Compared to the same period last year, sales increased by about 13%, but the scale of operating loss and net loss also increased.

The poorer-than-expected performance is largely due to the sharp rise in raw material prices. Approximately 400 billion KRW worth of construction loss provisions were reflected due to additional increases in material prices, including steel, and outsourcing costs. However, Daewoo Shipbuilding & Marine Engineering explained that securing stable orders for three years despite the ongoing global uncertainties is a positive factor.

In fact, Daewoo Shipbuilding & Marine Engineering secured orders worth 4.61 billion USD (approximately 5.9238 trillion KRW) in just four months, achieving more than half of this year's target. In particular, all 18 vessels ordered this year are dual-fuel propulsion ships, demonstrating outstanding technological capabilities in the eco-friendly ship sector, which is expected to help improve future performance.

A Daewoo Shipbuilding & Marine Engineering official said, "The difficulties in the shipbuilding industry continue due to increased shipbuilding costs caused by rising steel and equipment prices and outsourcing costs," adding, "We will do our best to improve future profitability through expanding orders of high value-added products such as LNG (liquefied natural gas) carriers and dual-fuel propulsion ships, cost reduction, and productivity improvement."

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