KSOE 2022 net loss narrows sharply on weak won, lower costs

SEOUL– Korea Shipbuilding & Offshore Engineering Co. (KSOE) said Tuesday its net loss narrowed sharply in 2022 from a year earlier on a weak won and lower costs.

Consolidated net loss came to 295.2 billion won (US$235 million) last year, compared with red ink of 1.14 trillion won a year earlier, KSOE said in a regulatory filing.

Sales rose 11.7 percent on-year to 17.3 trillion won, with its operating loss shrinking to 355.6 billion won from 1.38 trillion won.

In the fourth quarter, KSOE’s net loss stood at 212.3 billion won, compared with a deficit of 675.3 billion won three months earlier.

Sales rose 10.9 percent to 4.94 trillion won in the October-December period. The company posted an operating profit of 117.1 billion won, compared with a loss of 696.7 billion won a year ago.

KSOE said its bottom line improved last year thanks to the won’s weakness against the U.S. dollar and decreased materials costs.

KSOE, a subholding company of shipbuilding, oil refining and machinery conglomerate HD Hyundai, said it will likely perform better this year due to the so-called heavy-tail payment system, in which more of the money for a contract is paid at the time of delivery.

KSOE’s flagship sector is shipbuilding, and it also has such business areas as maritime and offshore plants, engines and machinery.

So far this year, the shipyard has clinched orders worth $3.77 billion to build 24 ships, or 24 percent of its full-year target of $15.74 billion.

KSOE has three major affiliates under its wing — Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co.

KSOE shares fell 1.96 percent to 79,900 won ($63.60) on the Seoul bourse Tuesday, underperforming the benchmark KOSPI’s 0.55 percent gain. The earnings report was released before the market closed.

Source: Yonhap News Agency

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