Seoul: Hanwha Ocean Co. announced on Monday that its net income for the first quarter has more than doubled compared to the previous year, primarily driven by robust earnings from high-value liquefied natural gas (LNG) carriers and improved profitability across different ship types.
According to Yonhap News Agency, Hanwha Ocean's net profit for the January-March period reached 500 billion won (US$339.9 million), marking a significant 131.8 percent increase from the same period last year, as detailed in the company's regulatory filing. The operating profit for the quarter was 441.1 billion won, up from 258.6 billion won a year ago, while sales rose by 2.1 percent to 3.2 trillion won.
A survey by Yonhap Infomax, the financial data firm associated with Yonhap News Agency, indicated that the operating profit exceeded the average estimate by 17 percent. However, the net profit estimate was not available. A company official highlighted that Hanwha Ocean's commercial shipbuilding division continued to drive growth, thanks to an increased share of high-priced LNG carrier projects. Meanwhile, the naval and special ship unit maintained stable sales driven by submarine and surface vessel construction. The energy plant division experienced a temporary sales decline due to the completion of certain projects.
During the first quarter, Hanwha Ocean secured new orders worth approximately $2.45 billion, which included four LNG carriers, seven very large crude carriers (VLCCs), and one wind turbine installation vessel (WTIV). The company anticipates continued improvement in profitability as sales from high-value shipbuilding projects gain momentum.
Furthermore, Hanwha Ocean stated that its energy plant division intends to pursue new orders focusing on competitive products such as floating production storage and offloading (FPSO) units, floating LNG facilities, and offshore platforms.