- Korean Shipbuilding Industry Set for Record Profits as Hanwha Ocean Joins Success.
- HD Korea Shipbuilding Reports 408% Surge in Operating Profit in 2024.
- Samsung Heavy Industries Achieves 102.3% Growth in Operating Profit in 2024.
Hanwha Ocean is expecting more orders this year for repairing U.S. naval vessels and building new warships at its Philadelphia shipyard. This is as the company’s naval ship business gains more attention, especially with President Donald Trump back in the White House with a renewed focus on building U.S. dominance over the seas, reports The Korea Times.
Positive Financial Results for Hanwha Ocean in 2024
Hanwha Ocean reported its first annual operating profit in four years, amounting to 237.9 billion won ($166 million) in 2024. This was a notable improvement from the 169 billion won earned in the fourth quarter. Annual revenue surged 45.5 per cent year-on-year, reaching 10.8 trillion won.
Optimistic Outlook and U.S. Navy Orders
Hanwha Ocean is optimistic about the future, expecting ongoing discussions with the U.S. Navy to result in orders for the maintenance, repair, and overhaul of five to six additional warships. The company’s Vice Chairman, Kim Dong-kwan, also highlighted the shipbuilder’s capabilities to U.S. national security officials during his participation in President Trump’s inauguration.
“We plan to boost ties with NATO and other allies in the medium to long run,” said a Hanwha Ocean official in charge of its naval ship business.
Potential Change in Global Shipbuilding Orders
The shipbuilder noted that there could be a shift from global shipping lines cutting their reliance on Chinese shipyards and opting for Korean shipyards. This was very possible with the looming U.S. sanctions on China.
Offshore Engineering Division Challenges
While the naval ship business has a promising outlook, Hanwha Ocean’s offshore engineering division will be negatively affected by Trump’s energy policies, which are adverse to the offshore wind power industry. However, the company expects that the effects will be limited in non-U.S. markets.
Korean Shipbuilding Industry Shows Strong Profit Growth
As Hanwha Ocean busters through its earnings recovery, all three heavyweight shipbuilders in Korea are likely to report annual operating profits for the first time in 13 years. HD Korea Shipbuilding & Offshore Engineering reported an increase in its operating profit by 408 per cent at 1.4 trillion won in 2024, including a 19.9 per cent gain in sales to 25.5 trillion won.
Samsung Heavy Industries also experienced considerable growth, with analysts expecting an operating profit of 472.1 billion won and revenue of 9.9 trillion won, increasing by 102.3 per cent and 23.3 per cent respectively.
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Source: The Korea Times
