Hanwha Aero "Next Month Nuriho and Next Year Daewoo Shipbuilding & Marine Engineering Main Contract Signing" (Update)

[Asia Economy Reporter Oh Hyung-gil] Hanwha Aerospace announced on the 31st that it plans to complete the acquisition of Daewoo Shipbuilding & Marine Engineering (DSME) by the first half of next year.

During the Q3 earnings conference call, Hanwha Aerospace stated regarding the acquisition of DSME, "Due diligence for the acquisition is currently underway, and after a due diligence process lasting up to six weeks, we plan to sign the final contract."

The company expressed that there is no problem in securing the acquisition funds independently. A Hanwha Aerospace official explained, "With ongoing overseas export contracts related to Hanwha Defense, we can sufficiently secure 1 trillion KRW on our own."

Additionally, Hanwha Aerospace said it plans to sign the final contract next month concerning its recent selection as the preferred bidder for the "Korean Launch Vehicle (Nuriho) Advancement Project Launch Vehicle Overall Management and Production" project.

Hanwha Aerospace added, "We are currently conducting detailed negotiations regarding the selection as the preferred bidder for the Nuriho advancement project, and plan to sign the final contract in November," further explaining, "Once the contract is signed, Hanwha Aerospace will conduct four Nuriho launches by 2027."

They also stated, "Sales are expected to occur significantly from next year through 2027," adding, "Although the contract was secured at a fixed price, some increases in raw material costs and labor expenses will be borne by us, so profit margins will not be very high."

Meanwhile, Hanwha Aerospace disclosed that its consolidated operating profit for Q3 was 64.4 billion KRW, a 23.4% decrease compared to the same period last year. During the same period, sales increased by 4% year-on-year to 1.3977 trillion KRW, and net profit rose by 17% to 87.3 billion KRW.

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