Hanwha Ocean’s Robust LNG Carrier Orders Push Operating Profit Above 1 Trillion Won for First Time in 7 Years

Operating profit of 1.1091 trillion won last year
Sales of 12.6884 trillion won...up 18% from a year earlier

Buoyed by an increase in orders for high value-added vessels such as liquefied natural gas (LNG) carriers last year, Hanwha Ocean surpassed 1 trillion won in operating profit for the first time in seven years.

On February 4, Hanwha Ocean announced that on a consolidated basis for last year it posted operating profit of 1.1091 trillion won and revenue of 12.6884 trillion won. Compared with the previous year, revenue rose by 18% and operating profit jumped by 366%.

In Geoje, South Gyeongsang, at the Hanwha Ocean Okpo Shipyard, the yard dock is packed with liquefied natural gas (LNG) carriers that remain brightly lit as construction work continues. Recently, the United States has been eyeing South Korea as a strategic partner to rebuild its aging domestic shipbuilding industry. Under the shipbuilding revitalization policy strongly promoted by the Trump administration, the United States is expected to place orders for up to 448 vessels, including merchant ships, liquefied natural gas (LNG) carriers, and naval warships, by 2037. By Kang Jinhyung

This is the first time since 2018, in seven years, that Hanwha Ocean’s annual operating profit has exceeded 1 trillion won. The company analyzed that its merchant ship division led growth in revenue, as production stabilization allowed an increased share of high-margin LNG carriers.

Hanwha Ocean added that the special ship division also contributed to overall revenue growth, as the production schedules for the Jangbogo-III Batch-II submarines, hulls No. 1, 2, and 3, proceeded smoothly, resulting in a slight increase in revenue.

Operating profit improved sharply from the previous year, driven by a shift toward profitability-focused products, combined with higher productivity and ongoing cost-reduction efforts.

Hanwha Ocean is also positive about this year’s outlook. The company expects that a stronger trend toward high-priced vessels, including LNG carriers, will not only boost revenue but also improve profitability. In particular, it projected that the full-scale production of the Jangbogo-III Batch-II submarine hull No. 2 and the Ulsan-class Batch-III frigate hulls No. 5 and 6 will significantly support profitability improvement.

This content was produced with the assistance of AI translation services.