Hanwha Ocean Q2 Operating Profit at 371.7 Billion KRW... Turns to Profit from Last Year

Sales Surge 30 Percent to 3.2941 Trillion KRW

Hanwha Ocean announced on the 29th that, on a consolidated basis, its operating profit for the second quarter of this year was tentatively tallied at 371.7 billion KRW, marking a turnaround from a loss in the same period last year.

Sales reached 3.2941 trillion KRW, up 30% compared to the same period last year. On a cumulative basis for the first half of the year, sales amounted to 6.4372 trillion KRW and operating profit reached 630.3 billion KRW.

Hanwha Ocean Geoje Plant View. Photo by Hanwha Ocean

Hanwha Ocean explained that both the increase in the number of working days due to seasonal factors and the higher proportion of highly profitable LNG carriers contributed to the growth in sales and operating profit.

By business division, the merchant ship division continued to see increases in both sales and profit, driven by the expanded share of LNG carriers.

The special ship division saw a slight decrease in sales compared to the previous quarter as the construction of the Jangbogo-III Batch-II lead ship entered its final stage. However, it maintained a solid profit margin thanks to stable production in the submarine and surface ship sectors, as well as MRO (maintenance, repair, and overhaul) projects for the US Navy.

The offshore division recorded a slight increase in sales compared to the previous quarter as the drillship performance improvement project entered its final phase.

A Hanwha Ocean official stated, "We are working to maximize profitability by improving productivity through production stabilization, while also pursuing cost reduction measures."