The three major South Korean shipbuilders—HD Korea Shipbuilding & Offshore Engineering Co., Hanwha Ocean Co., and Samsung Heavy Industries Co.—are anticipated to have achieved robust operating profits for 2024, signaling a strong rebound in the industry.
Profit Highlights
- HD Korea Shipbuilding & Offshore Engineering Co.
- Operating Profit: 1.43 trillion won (approximately $980 million).
- Maintained strong performance due to increased contracts and efficient operations.
- Hanwha Ocean Co.
- Operating Profit: 169.1 billion won.
- Marked a significant turnaround compared to previous years.
- Samsung Heavy Industries Co.
- Operating Profit: 472.1 billion won.
- Represents a 102.37% surge compared to 2023.
Driving Factors
The strong performance is attributed to the ongoing “super cycle” in the shipbuilding industry, characterized by:
- Increased orders: A surge in demand for eco-friendly and high-value vessels like LNG carriers and dual-fuel ships.
- Industry rebound: Recovery from past downturns and improved operational efficiency.
- Supportive policies: Push for decarbonization and net-zero goals by the International Maritime Organization (IMO), favoring advanced ship designs.
Outlook
The stellar performance in 2024 sets a positive tone for 2025. With the market’s focus shifting to sustainability and innovative technologies, South Korean shipbuilders are expected to maintain their competitive edge and continue capitalizing on the global demand for cutting-edge vessels.
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Source: YONHAP
