Samsung Heavy Industries Reports Operating Profit of 233.3 Billion KRW Last Year... First Surplus in 9 Years

Sales Increased by 34.7% Year-on-Year to 9 Trillion Won

Samsung Heavy Industries achieved an annual operating profit surplus for the first time in nine years since 2014. From this year, as sales of LNG carriers and FLNG (Floating Liquefied Natural Gas production facilities) increase, the improvement in profitability is expected to be even greater.

Samsung Heavy Industries announced on the 7th that its operating profit for last year was tentatively estimated at 233.3 billion KRW. It successfully turned a profit, improving by about 1 trillion KRW from a loss of 854.4 billion KRW the previous year. During the same period, sales increased by 34.7% year-on-year to 8.0094 trillion KRW.

Samsung Heavy Industries explained, "The operating profit exceeded the company's internal forecast of 200 billion KRW by 16.7%," adding, "The improvement was due to the increased number and volume of ships ordered during the ship price recovery period contributing significantly to the performance."

This year, Samsung Heavy Industries' performance improvement trend is expected to be more pronounced. As the number of LNG carriers built at high ship prices increases and FLNG production is fully underway, the scope of profitability improvement is expected to expand further.

Samsung Heavy Industries Pangyo R&D Center [Photo by Samsung Heavy Industries]

Samsung Heavy Industries projected this year's performance with sales of 9.7 trillion KRW and an operating profit of 400 billion KRW. The shipbuilding and offshore orders target for this year was set at 9.7 billion USD, 16.9% higher than last year's 8.3 billion USD.

Based on market outlooks by ship type, Samsung Heavy Industries plans to focus on orders centered on profitability improvement. The company expects strong market demand for LNG carriers and FLNG to continue this year, and orders for gas carriers are also expected to increase due to expanding demand for LPG and ammonia. There is also replacement demand for container ships and oil tankers applying eco-friendly ship technologies.

A Samsung Heavy Industries official said, "Based on a stable order backlog of more than three years, we will continue to strictly select orders focusing on profitability."

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