"FLNG Production in Full Swing" Samsung Heavy Industries Sees 58% Increase in Q1 Operating Profit

"We Aim to Achieve an Annual Profit Margin of 6% This Year"

Samsung Heavy Industries announced on April 24 that its operating profit for the first quarter of this year reached KRW 123.1 billion, a 58% increase compared to the previous year. Revenue was tallied at KRW 2.4943 trillion, up 6% over the same period.

Although both revenue and operating profit declined slightly compared to the previous quarter due to factors such as a decrease in the number of working days, they both showed a recovery trend compared to the same period last year. The company explained that this was the result of maintaining a trend of expanding revenue while significantly improving profitability. Pre-tax profit stood at KRW 90.9 billion, reflecting non-operating expenses such as interest costs.

The company also gave a positive outlook for its annual performance in 2025. With the full-scale production of floating liquefied natural gas production, storage, and offloading facilities (FLNG) set to begin this year, Samsung Heavy Industries expects both revenue and operating profit to show an upward trend each quarter. In particular, the company anticipates that steady growth in offshore project revenue in the second half of the year will contribute to improved operating profit, making it possible to achieve an annual profit margin of around 6%.

So far, Samsung Heavy Industries has secured orders worth USD 2.2 billion (16 vessels), which is 22% of its annual order target of USD 9.8 billion. A company representative stated, "We are on track to achieve our previously announced guidance of KRW 10.5 trillion in revenue and KRW 630 billion in operating profit for the year," adding, "While focusing on highly profitable LNG carriers and FLNG projects, we plan to diversify our order portfolio."