Daewoo Shipbuilding & Marine Engineering, 2Q Operating Profit 73.4 Billion KRW... 62.3% Decrease YoY

[Asia Economy Reporter Kim Hyewon] Daewoo Shipbuilding & Marine Engineering announced on the 14th that its operating profit based on consolidated financial statements for the second quarter was 73.4 billion KRW, a 62.3% decrease compared to the same period last year (194.8 billion KRW).

During the same period, sales amounted to 1,965.8 billion KRW, down 8.5% from the same period last year, and net profit was 51.5 billion KRW, a 64.5% decrease.

On a cumulative basis for the first half of this year (January to June), operating profit was 352.4 billion KRW, down 10.7% from the same period last year (394.5 billion KRW). Sales decreased by 7.1% to 3,923.9 billion KRW, and net profit fell 13.7% to 294 billion KRW.

Daewoo Shipbuilding & Marine Engineering stated, "Through productivity improvements and cost reduction activities, we secured profits from ships and offshore products delivered in the first half, maintaining a surplus."

They also added, "Compared to the end of last year, total liabilities decreased by 40.25 billion KRW, and the debt ratio improved from 200.3% at the end of 2019 to 175.8%, showing continuous improvement in our financial condition."

However, due to recent sluggish orders, profit margins declined compared to the same period last year. A Daewoo Shipbuilding & Marine Engineering official said, "We will do our best to secure orders through thorough countermeasures and proactive order-taking activities."