Lead

South Korean shipbuilder Hanwha Ocean Co. said its second-quarter net profit more than quadrupled from a year earlier, driven by higher-margin ships and a weaker won. Net profit for the three months ending in June surged to 692.6 billion won (US$471.9 million) from 148.5 billion won a year earlier, the company said in a press release.

Operating profit jumped 98 percent to 736.1 billion won in the second quarter from 371.7 billion won a year earlier, while sales rose to 22.4 trillion won.

Coverage Comparison

Yonhap News Agency reported the earnings results on July 27, noting the company attributed the strong performance to its focus on high-value vessels. "Orders for high-value ships began to be reflected in the bottom line in the second quarter. Higher vessel prices and the won's weakness against the dollar also helped boost earnings," a company spokesperson said.

For the first six months of the year, net profit more than tripled to 1.19 trillion won from 364.2 billion won in the same period last year. The company secured 6.4 trillion won in orders for high-value vessels during the first half.

Key Claims

  • Hanwha Ocean's second-quarter net profit rose to 692.6 billion won from 148.5 billion won a year earlier, more than quadrupling.
  • Operating profit for the second quarter jumped 98 percent year-on-year to 736.1 billion won.
  • Second-quarter sales increased to 5.44 trillion won from 3.29 trillion won a year earlier.
  • The company linked the results to higher vessel prices, a weaker won, and orders for high-value ships that began contributing to earnings in the second quarter.
  • Hanwha Ocean said costs related to its unsuccessful bid for Canada's submarine project were fully reflected in first-half results.

Key Claims

Hanwha Ocean said it secured 6.4 trillion won in orders for high-value vessels in the first half, and it described the Canadian submarine bid as a strategic, rather than purely financial, outcome. "The unsuccessful bid is not just a setback but a meaningful step to expand our presence in the global defense market," an official said during a conference call on the quarterly earnings.

The company is now in discussions over business opportunities in the Middle East, Africa, Latin America, and Europe, drawing on the relationships and know-how developed during the Canadian bidding process.

Meanwhile, HD Hyundai Co., the holding company of a separate South Korean shipbuilding conglomerate, also reported strong quarterly results.

HD Hyundai's net profit jumped more than fivefold to 3.17 trillion won (US$2.2 billion) in the second quarter from a year earlier, according to a regulatory filing. Operating income rose 262.2 percent to 4.12 trillion won, and sales climbed 22.5 percent to 22.4 trillion won.

Key Claims

  • Hanwha Ocean's second-quarter net profit quadrupled to 692.6 billion won, with operating profit up 98 percent to 736.1 billion won and sales up 65 percent to 5.44 trillion won.
  • First-half net profit more than tripled to 1.19 trillion won, and the company secured 6.4 trillion won in orders for high-value vessels.
  • HD Hyundai's second-quarter net profit rose over fivefold to 3.17 trillion won, with operating income up 262.2 percent to 4.12 trillion won.
  • HD Hyundai attributed its performance to improved productivity and sales growth of high-margin vessels, while its construction equipment arm contributed to the results.

Key Figures

  • Hanwha Ocean Q2 net profit: 692.6 billion won (up from 148.5 billion won)
  • Hanwha Ocean Q2 operating profit: 736.1 billion won (up 98 percent)
  • Hanwha Ocean Q2 sales: 5.44 trillion won (up 65 percent)
  • Hanwha Ocean 1H net profit: 1.19 trillion won (more than tripled)
  • HD Hyundai Q2 net profit: 3.17 trillion won (up 550.2 percent)
  • HD Hyundai Q2 operating income: 4.12 trillion won (up 262.2 percent)
  • HD Hyundai Q2 sales: 22.4 trillion won (up 30.2 percent on-year)