[Click eStock] "Samsung Heavy Industries Expected to Exceed Operating Profit Again This Year"

DS Investment & Securities evaluated on the 23rd that Samsung Heavy Industries is expected to exceed its operating profit target again this year. The target price and investment opinion 'Buy' were maintained.

Researcher Yang Hyung-mo stated, "At the end of 2023, four drillships were held as inventory assets, and with rising oil prices and ongoing offshore project developments, the drillship market is improving," adding, "As a result, all drillships are scheduled to be delivered, bringing in 600 billion KRW in cash inflow."

He continued, "A total of 33 vessels were delivered in 2023, and with about 40 vessels expected to be delivered this year, a cash surplus exceeding 1.8 trillion KRW is anticipated," and "The order target for this year is 9.7 billion USD, with LNG carriers worth 3.5 billion USD and VLAC worth 200 million USD ordered so far, achieving 38% of the target." He explained that the already secured volume exceeds 6 billion USD.

He said, "The secured projects include Coral FLNG worth 2.5 billion USD (second half of the year), some container ships, VLAC, shuttle tankers (ExxonMobil and Petrobras), and 10 LNG carriers (8 of which are for the Mozambique Channel)," adding, "Furthermore, with the Biden administration halting approvals for pending LNG export projects, if the substitute FLNG from Delfin is ordered, the company's new orders in 2024 are expected to exceed 11 billion USD."

He added, "Samsung Heavy Industries announced a target of 9.7 trillion KRW in sales and 400 billion KRW in operating profit for 2024," and "Last year's target was 200 billion KRW in operating profit, which was exceeded, and this year, exceeding the target is also expected."

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