Seoul: Hanwha Ocean Co., the shipbuilding arm of South Korea's Hanwha Group, announced that its second-quarter net profit more than quadrupled compared to the previous year, primarily due to increased production of high-value ships and a weaker South Korean won.
According to Yonhap News Agency, the company's net profit for the quarter ending in June soared to 692.6 billion won (approximately US$471.9 million), up from 148.5 billion won in the same period last year. This significant increase is attributed to the company's strategic focus on high-margin ships and favorable currency exchange rates.
A company spokesperson highlighted that the second quarter saw the impact of orders for high-value ships being realized in the financial results. The rise in vessel prices, coupled with the won's depreciation against the US dollar, significantly boosted the company's earnings.
The operating profit for the second quarter increased by 98 percent, reaching 736.1 billion won from 371.7 billion won a year ago. Sales also saw a substantial rise, climbing 65 percent to 5.44 trillion won from 3.29 trillion won in the previous year.
For the first half of the year, Hanwha Ocean reported a more than threefold increase in net profit, totaling 1.19 trillion won, compared to 364.2 billion won in the first half of the previous year. Operating profit for the same period grew by 86.8 percent, reaching 1.17 trillion won, while sales increased by 34 percent to 8.65 trillion won.
The first half of the year also saw the company securing 6.4 trillion won in orders for liquefied natural gas (LNG) carriers, very large crude carriers (VLCCs), and other high-value vessels. Hanwha Ocean continues to pursue its annual order target, leveraging its expertise and market position in the shipbuilding industry.