Hanwha Ocean Reports Operating Loss of 9.6 Billion KRW in Q2, Turns to Deficit

Hanwha Ocean recorded an operating loss of 9.6 billion KRW in the second quarter, turning to a deficit.

Perspective view of Hanwha Ocean's cargo ship.
[Photo by Hanwha Ocean]

Hanwha Ocean announced on the 26th that it posted sales of 2.5361 trillion KRW and an operating loss of 9.6 billion KRW in the second quarter. Compared to the previous quarter, sales increased by 11.1%, but operating profit turned to a loss.

Hanwha Ocean stated, "Due to the impact of loss-making container ships, costs related to production schedule adjustments and increased outsourcing expenses for production stabilization were reflected, resulting in a slight loss in the second quarter. However, through cost reduction activities and exchange rate increases, we succeeded in turning a profit in the first half compared to the same period last year."

In the second half of the year, the sales proportion of LNG carriers is expected to increase further, and profitability is anticipated to improve significantly through production stabilization. Additionally, with the full-scale commencement of submarine overhaul and marine plant construction, it is expected to contribute to increased sales.

Hanwha Ocean has secured about three years’ worth of stable orders. The first half order performance includes a total of 27 vessels (units): 16 LNG carriers, 7 crude oil carriers, 2 ammonia carriers, 1 gas carrier, and 1 marine unit, with a total amount of 5.33 billion USD, exceeding last year’s order performance of 3.52 billion USD in just six months. In the second half, the company plans to continue selective orders amid a high level of order backlog and a favorable market environment.

A Hanwha Ocean official said, "Investments to secure stable manpower supply and production efficiency are expanding, and the production system has entered a stabilization phase," adding, "As the construction of LNG carriers ordered at high prices is in full progress, we will focus all our capabilities on improving profitability."

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