Samsung Heavy Industries Reports 1.3 Trillion KRW Operating Loss Last Year... "Profitability to Improve This Year with Large-Scale Orders"

[Asia Economy Reporter Jeong Dong-hoon] Samsung Heavy Industries reported sales of 6.622 trillion KRW and an operating loss of 1.312 trillion KRW for last year.

Samsung Heavy Industries announced this on the 27th through a public disclosure. Sales in the fourth quarter of last year were 1.8465 trillion KRW, with an operating loss of 257.1 billion KRW.

Fourth-quarter sales increased compared to the third quarter (1.4854 trillion KRW) due to an increase in operating days, but the operating loss widened. The expanded deficit was due to ▲ the possibility of a slowdown in price reductions for materials such as thick plates being reflected in costs in advance ▲ valuation losses on drillship inventory assets ▲ one-time payments such as settlement amounts from wage negotiations. The recurring operating loss was around 72 billion KRW.

Samsung Heavy Industries completed financial structure improvements by repaying 2.6 trillion KRW in borrowings in 2021, significantly lowering the debt ratio to below 200%.

A Samsung Heavy Industries official said, "We drastically improved our financial structure last year and secured stable operating volume through large-scale orders. Based on this, we will carry out business activities this year with a differentiated order strategy focused on profitability."

On the same day, Samsung Heavy Industries also disclosed its business outlook for this year, with sales of 7 trillion KRW and a shipbuilding and offshore orders target of 8.8 billion USD. The sales target is about 6% higher than in 2021 (6.6 trillion KRW). The shipbuilding and offshore orders target is similar to last year's (9.1 billion USD).