Hanwha Ocean Posts Q3 Operating Profit of 485.7 Billion Won on High-Priced LNG Carriers

Revenue at 3.4139 trillion won, up 13% year on year

Hanwha Ocean's operating profit rose 68% year on year in the third quarter, boosted by an increase in construction volume for high-priced liquefied natural gas (LNG) carriers.

Eco-friendly LNG carrier built by Hanwha Ocean. Hanwha Ocean

Hanwha Ocean announced on October 27 that it had provisionally posted consolidated revenue of 3.4139 trillion won and operating profit of 485.7 billion won for the third quarter of this year. Revenue increased 13% year on year, while operating profit rose 68%.

However, compared with the previous quarter, revenue and operating profit fell 37.3% and 34%, respectively. Cumulative results for the first three quarters of this year were 12.067 trillion won in revenue and 1.6629 trillion won in operating profit.

The decline in third-quarter revenue from the previous quarter resulted from a combination of factors: a base effect from the temporary recognition of offshore project revenue upon delivery in the previous quarter, fewer working days due to summer vacation and the Chuseok holiday, and exchange-rate effects.

In contrast, revenue grew year on year as construction volume increased for high-priced vessels, particularly LNG carriers, while work on submarine and surface-ship projects progressed steadily. Operating profit also remained solid, supported by revenue contributions from high-priced vessels.

Hanwha Ocean forecast that revenue growth would continue year on year in the fourth quarter, backed by its backlog of high-priced orders. The Merchant Ship Business Division expects to maintain solid profitability despite changes in its vessel mix, including a higher share of VLCCs and container ships, thanks to a greater contribution from high-margin projects secured since 2024 and cost-saving effects.

The Special Ship Business Division expects revenue to increase year on year by accelerating work on the second ship in the Jangbogo-III Batch-II program and the fifth and sixth ships in the Ulsan-class Batch-III program. The Energy Plant Business Division also forecasts a gradual increase in revenue as work on delayed projects returns to normal and new projects enter the production stage.

A Hanwha Ocean official said, "We plan to secure additional profits by delivering projects early and consulting with clients, while continuing to improve profitability."

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