Hanwha Ocean Achieves First Profit Turnaround Since Launch... 1.92 Trillion KRW in Sales

Increase in the Proportion of High Value-Added Ships

Hanwha Ocean has succeeded in turning a profit for the first time since its launch. It is the first time in 12 quarters since the fourth quarter of 2020.

Hanwha Ocean announced on the 25th that it recorded sales of 1.9169 trillion KRW and an operating profit of 74.1 billion KRW in the third quarter. Net profit for the period was 231.6 billion KRW. Compared to the same period last year, sales increased by about 100%, and both operating profit and net profit turned positive.

[Image source=Yonhap News]

Hanwha Ocean was newly launched last May after being acquired by Hanwha Group. It has focused on strengthening efficiency and improving productivity through management restructuring and a divisional organizational reorganization.

It is explained that the efforts of all employees to stabilize production, such as being the first in the industry to conclude wage negotiations, have borne fruit.

Also, a recent arbitration lawsuit over the refund of advance payments for two drillships was won, which greatly helped the turnaround to profitability. The reversal of inventory asset valuation following the victory increased operating profit, and the reversal of interest reflected and foreign exchange gains positively affected net profit for the period.

Hanwha Ocean has secured about three years’ worth of orders. As of the end of the third quarter, out of 99 merchant ship orders on hand, 65 ships, accounting for 66%, are highly profitable LNG carriers. The profit-making trend is expected to continue for the time being following the fourth quarter.

A Hanwha Ocean official said, "We succeeded in turning a profit within the year based on the increased sales proportion of high value-added ships and improved productivity," adding, "We will continuously improve profitability with planned investments and vision."

As of the end of the third quarter on a consolidated basis, Hanwha Ocean’s total assets amounted to 13.3 trillion KRW, total liabilities were 10.6 trillion KRW, and total equity was 2.7 trillion KRW. The debt ratio is about 397%, continuously improving compared to 1542% at the end of 2022. If the ongoing paid-in capital increase is completed, the debt ratio is expected to improve further to the 200% range.

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