Daewoo Shipbuilding & Marine Engineering Reports 1.6 Trillion KRW Loss Last Year, Down 8% Year-on-Year

Losses Due to Increased Outsourcing Costs and Payment of Collective Bargaining Agreement Settlement
"Doing Our Best to Improve Profitability"... Securing More Than 3.5 Years of Work

Daewoo Shipbuilding & Marine Engineering (DSME) announced on the 6th that it recorded consolidated sales of 4.8602 trillion KRW and an operating loss of 1.6135 trillion KRW last year. Sales increased by 8.3% compared to the same period last year, while the operating loss decreased by 8%.

In the fourth quarter of last year, DSME posted sales of 1.4492 trillion KRW and an operating loss of 416.1 billion KRW. Sales increased by 6.9% year-on-year, and the operating loss decreased by 19%. The net loss for the period was 430.3 billion KRW.

Regarding the main cause of the fourth-quarter deficit, DSME stated, "We reflected losses of approximately 250 billion KRW due to increased outsourcing costs," adding, "One-time expenses such as payments related to the settlement of labor-management negotiations were also included."

DSME expects profitability to improve going forward. By achieving order targets over the past two years, it has secured a stable workload for 3.5 years. This year, the first order was successfully secured for a liquefied natural gas (LNG) carrier. Ship prices continue to rise. Of the 113 ships in the order backlog, 62 are high value-added LNG carriers, which is optimistic for sales growth and profitability.

Photo by Mun Ho-nam munonam@

DSME employees are engaged in cost-cutting activities to improve profitability. Through an order strategy focused on high value-added vessels such as LNG carriers and dual-fuel propulsion ships, the company aims to create a structure that can generate stable profits even amid rapid environmental changes by focusing on future profitability improvement.

A DSME official said, "Although the domestic and international environment remains unstable due to Russia's invasion of Ukraine and the global economic downturn, we will do our best to improve profitability."

Meanwhile, DSME announced that it will convene its regular shareholders' meeting on the 21st at the Happiness Hall of Daewoo Shipbuilding & Marine Engineering Ocean Plaza in Geoje, Gyeongnam. The agenda for this shareholders' meeting is expected to include approval of the financial statements and approval of the directors' remuneration limit.

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