Samsung Heavy Industries Returns to "10 Trillion Won Club" After 9 Years... Highest Operating Profit in 12 Years
Sales Reach 10.65 Trillion Won
Up 7.5% Year-on-Year
Portfolio Reorganized Around High-Profit Vessel Types
Improved Profit Structure Drives Results
Samsung Heavy Industries has returned to the “10 trillion won club” in annual sales for the first time in nine years.
On January 30, Samsung Heavy Industries announced that it achieved sales of 10.65 trillion won and an operating profit of 862.2 billion won last year. Sales increased by 7.5% and operating profit by 71.5% compared to the previous year.
Last year’s sales surpassed 10 trillion won for the first time in nine years, since reaching 10.4142 trillion won in 2016. Operating profit also marked the highest level in 12 years.
A representative from Samsung Heavy Industries analyzed, “The improvement in the profit structure was driven by a reorganization of the order portfolio focused on high-profit vessel types and an increase in production volume from offshore projects.”
Currently, three floating liquefied natural gas (FLNG) production facilities are under construction at the Geoje Shipyard, including the Malaysia JET LNG, Canada Cedar, and Mozambique Coral projects. A newbuild order contract with Delfin in the United States is also imminent.
In addition, as global operation strategies with domestic and international partner shipbuilders are being fully implemented, production volume is expected to rise, leading to an even greater improvement in sales. This year’s sales are projected to increase by 20% from last year to 12.8 trillion won, with an order target of 13.9 billion US dollars.
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The representative from Samsung Heavy Industries emphasized, “This year, we expect to achieve tangible results through cooperation with US shipyards,” adding, “We will continue a solid growth trajectory through a selective order strategy focused on profitability.”
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