Expansion in Offshore Segment Sales and Improved Product Mix
Annual Revenue Expected to Exceed 10.5 Trillion Won Guidance
Profitability Set to Strengthen with LNG and FLNG-Focused Orders
Samsung Heavy Industries nearly doubled its operating profit in the third quarter compared to the previous year, driven by increased sales in the offshore segment and an improved vessel mix. The company expects its annual revenue to surpass the guidance of 10.5 trillion won presented at the beginning of the year.
On October 23, Samsung Heavy Industries announced through a regulatory filing that its provisional revenue for the third quarter of 2025 reached 2.6348 trillion won, with an operating profit of 238.1 billion won. Compared to the same period last year, revenue increased by 13% and operating profit by 99%. The main factors behind the improved performance are the decrease in revenue from low-priced container ships and the increase in sales from the highly profitable offshore plant segment. On a cumulative basis for the third quarter, the company achieved revenue of 7.8 trillion won and operating profit of 566 billion won.
The company expects the proportion of high-value vessels and offshore segment sales to further increase in the fourth quarter, resulting in annual revenue exceeding its guidance. In particular, ships ordered during the price upcycle since 2023 are now being recognized as revenue, which is expected to continue improving profit margins.
As of October, Samsung Heavy Industries has secured orders for a total of 27 vessels, worth approximately 5 billion dollars (about 7 trillion won). In the commercial ship segment, the company has achieved 4.3 billion dollars in orders, which is 74% of its 5.8 billion dollar target, and 700 million dollars in the offshore segment. By completing the 'Coral Floating Liquefied Natural Gas Facility (FLNG)' and 'Delfin FLNG' projects within the year, the company is working toward achieving its offshore segment order target of 4 billion dollars. Major orders include seven liquefied natural gas (LNG) carriers, nine shuttle tankers, two very large ethane carriers, six crude oil tankers, and two container ships.
A representative from Samsung Heavy Industries stated, "Given the current order pipeline in both the commercial ship and offshore segments, it is likely that we will achieve our order targets for this year," adding, "We will continue to expand profitability based on high-quality orders going forward."
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