[Click e-Stock] "Hanwha Ocean Expected to Grow in Special Vessel and Offshore Sectors"

On July 16, Daishin Securities analyzed that Hanwha Ocean is expected to continue its strong performance, driven by growth prospects in the special vessel and offshore sectors.

Daishin Securities projected that Hanwha Ocean's earnings for the second quarter of this year would reach KRW 3.3164 trillion in revenue, up 30.8% year-on-year, and KRW 280.3 billion in operating profit, marking a turnaround to profitability. Both revenue and operating profit are expected to exceed market expectations. The operating profit margin (OPM) is estimated at 8.5%.

Lee Jini, a researcher at Daishin Securities, explained, "Although the average quarterly exchange rate fell by KRW 52.7 (-3.6%) compared to the previous quarter, resulting in an exchange loss at a similar level to the KRW 30 billion exchange gain (+KRW 57.6, +4.1%) in the first quarter, revenue is expected to increase due to a rise in working days and the commencement of special vessel construction processes."

In particular, the offshore and special vessel divisions are expected to drive performance in the second half of the year. In the offshore sector, in addition to increased demand for FPSO (Floating Production Storage and Offloading) units, Hanwha Ocean has secured a diverse pipeline including FLNG and WTIV. The special vessel division is also progressing smoothly, with the commencement of construction for the Jangbogo Batch-3 and Ulsan-class Batch-3 5th and 6th ships, revenue recognition from the MRO (Maintenance, Repair, and Overhaul) contract for the Yukon ship, and the successful order of the third naval vessel, the Charles Drew.

There was also analysis that concerns about remaining slots for 2028 can be alleviated in the short term. Lee explained, "The company can place its own orders through Hanwha Shipping, and with the rise in VLCC prices, productivity can be increased through parallel construction in Dock 1."

Looking at the expected results by business division, the merchant ship division is projected to record KRW 2.5985 trillion in revenue, up 23.0% year-on-year, and KRW 242.8 billion in operating profit, returning to profitability. The special vessel division is expected to see revenue of KRW 289.1 billion, down 12.1%, and operating profit of KRW 28.8 billion, down 60.7%. The offshore division is forecast to post KRW 272.9 billion in revenue, up 37.1%, and KRW 13.6 billion in operating profit, returning to profitability.

Researcher Lee emphasized the importance of "the increase in revenue in the offshore division and the improvement in profit margin in the special vessel division," highlighting Hanwha Ocean's robust offshore and special vessel MRO pipeline as a key strength. Even excluding LNG, the company is expected to maintain its growth trajectory, backed by a solid pipeline.