Hanwha Ocean Q3 Operating Profit 25.6 Billion KRW... 65.5% Decrease YoY

Turned to Profit Compared to Previous Quarter

Hanwha Ocean announced on the 29th that it recorded sales of 2.7031 trillion KRW and an operating profit of 25.6 billion KRW in the third quarter.

Compared to the same period last year, sales increased by 41%, while operating profit decreased by 65.5%. Despite a decrease in operating days, sales rose compared to the previous quarter due to an increased proportion of LNG carrier sales and the incorporation of the plant business division acquired from Hanwha Corporation. Operating profit turned positive compared to the previous quarter, despite reflecting one-time factors such as exchange rate decline and increased outsourcing costs.

The Shipping Division saw a recovery in profitability as the proportion of low-priced container ship orders decreased and the proportion of high-profit LNG ships increased. Sales and operating profit are expected to increase next year due to the rise in the average price of LNG carriers.

The Special Ship Division maintains solid profit margins, focusing on highly profitable submarine and MRO (Maintenance, Repair, and Operations) businesses.

The Offshore Division experienced a 46.8% increase in sales compared to the previous quarter and a reduction in losses, driven by the full-scale sales of equipment (FCS) that supplies power to deep-sea facilities and controls gas fields, as well as offshore wind turbine installation vessels (WTIV).

Hanwha Ocean has recorded orders worth 7.36 billion USD this year, including one LNG FSRU (Floating Storage Regasification Unit), 16 LNG carriers, 3 VLACs (Ammonia Carriers), 7 VLCCs (Crude Oil Carriers), and 6 container ships in the shipping sector.