Samsung Heavy Industries Q1 Operating Profit Quadruples "Better in the Second Half"

Sales of 2.3478 trillion KRW and operating profit of 77.9 billion KRW
"Expecting to secure one FLNG unit worth trillions KRW within the year
Continued reflection of high-profit LNG carrier sales"

Samsung Heavy Industries announced on the 26th that its operating profit in the first quarter of this year increased about fourfold compared to the same period last year, thanks to rising ship prices, sales of high-profit ship types, and stable raw material prices.

Samsung Heavy Industries posted provisional results of 2.3478 trillion KRW in sales and 77.9 billion KRW in operating profit for the first quarter of this year. Sales increased by 46% and operating profit rose by 297.4% compared to the same period last year.

Regarding these results, Samsung Heavy Industries stated, "Sales slightly declined compared to the previous quarter (2.4331 trillion KRW) due to a decrease in operating days caused by the Lunar New Year holiday, but increased compared to the same period last year." They added, "Operating profit was similar to the previous quarter (79 billion KRW) and increased about fourfold compared to the same period last year (19.6 billion KRW), establishing a stable profit structure." Pre-tax profit recorded 15.2 billion KRW, reflecting interest expenses and foreign exchange valuation losses.

Large FLNG 'Coral Sul' built by Samsung Heavy Industries [Photo by Samsung Heavy Industries]

Samsung Heavy Industries has secured orders worth 3.8 billion USD so far this year, achieving 39% of its annual order target of 9.7 billion USD.

They are currently negotiating multiple merchant ship projects, including LNG carriers, eco-friendly container ships, and Very Large Ammonia Carriers (VLAC).

They also expect to secure an FLNG (Floating Liquefied Natural Gas) production facility worth trillions of KRW within the year. In January this year, Samsung Heavy Industries received an order for one FLNG unit from a North American client, valued at 2.0101 trillion KRW (approximately 1.5 billion USD).

Samsung Heavy Industries plans to maximize profits through selective orders focused on profitability based on sufficient order backlog.

A Samsung Heavy Industries official said, "Sales of high-profit ship types such as LNG carriers are expected to continue," adding, "With one FLNG unit recently starting production, sales and operating profit are expected to increase in the second half of the year."

They further stated, "Achieving the annual sales target of 9.7 trillion KRW and operating profit of 400 billion KRW seems feasible."

Samsung Heavy Industries Q1 Business Performance This Year [Image Source=Samsung Heavy Industries]

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