Hanwha Ocean Reports Operating Profit of 25.6 Billion KRW in Q3 2024

3Q Sales of 2.7031 Trillion KRW, 41% Increase from Previous Quarter

Continued Performance Improvement Through Various Profitability Enhancement Efforts by Business Segment

Hanwha Ocean (CEO Kim Hee-chul) announced through its consolidated financial results that it recorded sales of KRW 2.7031 trillion and an operating profit of KRW 25.6 billion in the third quarter of 2024. The cumulative sales for the first three quarters of 2024 amounted to KRW 7.5228 trillion, with an operating profit of KRW 68.9 billion.

Despite a decrease in operating days, sales in the third quarter of 2024 increased by 6.6% compared to the previous quarter due to the expanded sales proportion of LNG carriers and the inclusion of the plant division acquired from Hanwha Corporation. Sales also rose by 41% compared to the same period last year.

Operating profit turned positive compared to the previous quarter despite one-off factors such as exchange rate declines and increased outsourcing costs.

The Shipping Division saw a full-scale recovery in profitability as the proportion of low-priced container ship orders decreased and the share of high-margin LNG ships increased. Sales and operating profit are expected to further expand next year due to the rise in the average price of LNG carriers.

The Special Ship Division maintains a solid profit margin, focusing on highly profitable submarine and MRO (Maintenance, Repair, and Overhaul) businesses.

The Offshore Division’s sales increased by 46.8% quarter-on-quarter, and the deficit narrowed as sales of equipment supplying power to deep-sea facilities, Field Control Stations (FCS) capable of controlling gas fields, and Wind Turbine Installation Vessels (WTIV) for offshore wind power installation began in earnest.

Despite challenging domestic and international conditions, Hanwha Ocean has secured orders worth USD 7.36 billion this year, including one LNG FSRU (Floating Storage Regasification Unit), 16 LNG carriers, three VLACs (Ammonia Carriers), seven VLCCs (Crude Oil Carriers), and six container ships.

In particular, the company continues to secure profitability by pursuing a selective order strategy, signing high-priced contracts that exceed market prices.

In August, Hanwha Ocean became the first domestic company to win an MRO contract for naval vessels ordered by the U.S. Navy, marking its first transaction with the U.S. Navy, and is currently negotiating follow-up MRO projects.

A Hanwha Ocean official stated, “We will continue to improve our performance by focusing on profitability-centered business operations based on production stabilization.”

Hanwha Ocean Geoje Plant.

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