Posted on July 29, 2024
Hanwha Ocean announced its first-half results for 2024 through a provisional performance disclosure based on consolidated standards, revealing a significant turnaround in its financial performance. The company recorded sales of 4.8197 trillion won (approximately $3.57 billion), an operating profit of 43.3 billion won, and a net profit of 23.6 billion won. This marks a substantial improvement compared to the same period last year, with sales increasing by approximately 47.8%, and both operating profit and net profit turning positive.
The increase in sales was primarily driven by the rise in construction volume and the repeated production system of LNG carriers, which are high-value-added vessels. These carriers accounted for more than half of Hanwha Ocean’s total sales. However, the company experienced a slight deficit in the second quarter due to the impact of deficit container ships and increased outsourcing costs related to production stabilization. Despite these challenges, cost reduction activities and the rise in exchange rates contributed to the overall profitability in the first half compared to the same period last year.
In the second half of the year, Hanwha Ocean expects the sales proportion of LNG carriers to increase further, leading to significant improvements in profitability through production stabilization. Additionally, the commencement of full-scale work on submarine maintenance and marine plants is anticipated to contribute to sales growth.
Hanwha Ocean has secured stable work for approximately three years, with a robust first-half order performance that includes 16 LNG carriers, 7 crude oil carriers, 2 ammonia carriers, 1 gas carrier, and 1 offshore unit, totaling 27 units. The total order amount reached 5.33 billion dollars, surpassing last year’s order performance of 3.52 billion dollars in just six months. The company plans to continue selective orders amid a high level of order backlog and a favorable market environment in the second half.
A Hanwha Ocean official stated, “Investments are being expanded for stable workforce supply and production efficiency, and the production system has entered a stabilization phase,” adding, “As the construction of LNG carriers ordered at high prices progresses in earnest, we will focus all our capabilities on improving profitability.”
Meanwhile, Hanwha Ocean is making aggressive investments to strengthen its global competitiveness. The company plans to expand business opportunities by acquiring a stake in Nextdecade, which includes LNG sales and transportation and necessary shipbuilding at Nextdecade’s Rio Grande export terminal. Recently, Hanwha Ocean acquired a U.S. shipyard to establish a bridgehead for full-scale entry into the world’s largest defense market. Additionally, by acquiring a stake in Dyna-Mac, a specialized marine structure manufacturer in Singapore, Hanwha Ocean has secured price competitiveness and gained a favorable position for overseas bidding.
