Samsung Heavy Industries Sees Q3 Net Profit Surge on High-End Ship Orders

Seoul: Samsung Heavy Industries Co., the world's third-largest shipbuilder by orders, announced Thursday that its third-quarter net profit more than doubled compared to the previous year, driven by increased orders for high-end ships. The company's net profit for the three months ending in September rose to 71.4 billion won (US$52 million), up from 35.6 billion won in the same period last year. According to Yonhap News Agency, the surge in profits was attributed to a rise in orders for value-added ships, such as liquefied natural gas (LNG) carriers and floating LNG facilities, which significantly bolstered the company's financial performance. Operating profit for the September quarter increased by 58 percent to 119.9 billion won, compared to 75.9 billion won a year ago, while sales saw a 15 percent increase, reaching 2.32 trillion won from 2.03 trillion won in the prior-year period. Samsung Heavy has secured $5.4 billion worth of orders so far this year, representing 57 percent of its annual order target of $9.7 billion. The company expressed confidence in achieving its annual earnings goals, which were set at the beginning of the year. It aims to achieve an operating profit of 400 billion won on sales of 9.7 trillion won, surpassing the 233 billion won and 8.009 trillion won figures projected for 2023. With an order backlog valued at $31.9 billion, Samsung Heavy's shipyard in Geoje, located 331 kilometers south of Seoul, is expected to remain busy for the next three years, ensuring continued production and financial stability.