Hanwha Ocean Turns to Operating Profit of 43.3 Billion Won in First Half... Sales Reach 4.8197 Trillion Won

Sales Up 47.8% Year-on-Year

Stable Signal in Repetitive Production of LNG Carriers

Hanwha Ocean (Vice Chairman and CEO Kwon Hyukwoong) reported an operating profit of 43.3 billion KRW in the first half of the year, turning to the black.

Hanwha Ocean announced its provisional consolidated results for the first half of 2024 on the 26th.

For the first half of 2024, Hanwha Ocean recorded sales of 4.8197 trillion KRW, operating profit of 43.3 billion KRW, and net profit of 23.6 billion KRW. Compared to the same period last year, sales increased by approximately 47.8%, and both operating profit and net profit turned positive.

Hanwha Ocean stated that the increase in construction volume and the repetitive production system for LNG carriers contributed to the sales growth. The company explained that LNG carriers, a high value-added vessel type, accounted for more than half of total sales.

However, due to the impact of deficit-making container ships, costs for production schedule adjustments and increased outsourcing were reflected as production stabilization expenses, resulting in a slight deficit in the second quarter. Nevertheless, cost reduction efforts and a rise in exchange rates enabled the company to achieve a turnaround to profit for the first half compared to the previous year.

Hanwha Ocean expects the sales proportion of LNG carriers to further increase in the second half, with profitability improving significantly through production stabilization. The company also anticipates that the commencement of full-scale submarine maintenance and offshore plant projects will contribute to increased sales.

Hanwha Ocean is known to have secured a stable workload for about three years. In the first half, the company received orders for 16 LNG carriers, 7 crude oil carriers, 2 ammonia carriers, 1 gas carrier, and 1 offshore facility, totaling 27 vessels (units). The total value was $5.33 billion, surpassing last year's order performance of $3.52 billion in just six months. The company plans to continue selective order intake in the second half, supported by a high order backlog and a favorable market environment.

A Hanwha Ocean official stated, "Investments to secure stable manpower and improve production efficiency are expanding, and the production system has entered a stabilization phase. We will focus all our capabilities on improving profitability as the construction of LNG carriers, which were ordered at high prices, is now in full swing."

Hanwha Ocean is making aggressive investments to strengthen its global competitiveness. By acquiring a stake in Nextdecade, the company plans to expand business opportunities in LNG sales, transportation, and necessary shipbuilding at the Rio Grande export terminal owned by Nextdecade.

Recently, Hanwha Ocean acquired Philly Shipyard in the United States, establishing a bridgehead for entry into the world's largest defense market. In addition, by acquiring a stake in Dyna-Mac, a Singapore-based specialist in offshore structures, the company has secured price competitiveness and a favorable position in overseas bidding.

Exterior view of Hanwha Ocean Dock 1, where LNG carriers are being mass-produced.