Hanwha Ocean, a prominent South Korean shipbuilding company, has made a remarkable financial turnaround, marking its first profitable year in four years. The company announced on January 24 that it achieved sales of 10.776 trillion won and an operating profit of 237.9 billion won for the previous year, showing a 45.5% increase in sales compared to the previous year.
Key Financial Highlights
- Operating profit: 237.9 billion won
- Sales growth: 45.5% increase compared to the prior year
- Fourth-quarter performance: Operating profit of 169 billion won, driven by a 20.4% sales growth compared to Q3.
A company representative credited the robust performance to the completion of high-value projects and increased working days in the fourth quarter, highlighting positive contributions across all business sectors.
Sector-Specific Growth Drivers
- Merchant Ship Division:
- Significant recovery due to high demand for LNG carriers, in line with the global push towards cleaner energy sources.
- Special Ship Division:
- Growth driven by new submarine construction and overhaul projects, with South Korea investing heavily in its naval capabilities amid regional tensions.
- Marine Division:
- Focus on deep-sea energy infrastructure and offshore wind installation projects, reflecting Hanwha Ocean’s shift towards eco-friendly technologies.
- Favorable exchange rate fluctuations further supported profitability.
Future Outlook and Expansion Plans
- Expansion of LNG carrier construction: The company aims to further capitalize on the growing demand for LNG carriers.
- Submarine projects: Hanwha Ocean plans to build three new submarines this year.
- U.S. MRO business growth: Expanding maintenance, repair, and overhaul services in the U.S. market.
- New marine projects: The company expects to begin new projects, boosting long-term prospects.
A company representative emphasized the importance of overcoming previous process delays and executing high-value-added ship constructions with a focus on ultra-gap and eco-friendly technologies. This approach is intended to establish Hanwha Ocean as a leader in the global market, underpinned by internal stability.
With a solid financial recovery in 2024, Hanwha Ocean is poised for continued growth. By capitalizing on market trends in LNG, submarines, and eco-friendly technologies, the company is reinforcing its position as a key player in the global shipbuilding industry.
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Source: BUSINESS KOREA
