Samsung Heavy Industries recorded a profit last year, meaning that the big three shipbuilders, including HD Hyundai Heavy Industries and Hanwha Ocean, also posted profits. The South Korean shipbuilding industry has bright prospects as it is expected to benefit from the expansion of maintenance, repair, and overhaul (MRO) services and the liquefied natural gas (LNG) market with the inauguration of Donald Trump's second administration in the United States.
Samsung Heavy Industries announced on the 5th that it recorded sales of 9.9031 trillion won and an operating profit of 502.7 billion won last year. These figures represent increases of 24% and 116%, respectively, compared to the previous year. HD Hyundai Heavy Industries reported an operating profit of 705.2 billion won, a 295% increase compared to the prior year, and sales of 14.4865 trillion won, a 21% increase. Hanwha Ocean achieved an operating profit of 237.9 billion won last year, transitioning from a deficit of 196.5 billion won the prior year, while its sales grew by 46% to 1.776 trillion won. This is the first annual profit for Hanwha Ocean since 2020.
The domestic shipyards successfully improved their performance due to a significant number of orders for high-value-added vessels such as LNG carriers. According to the shipbuilding industry, South Korea has secured about 70% of the global orders for LNG carriers. Of the 173 LNG carriers ordered worldwide over the past three years, HD Korea Shipbuilding & Offshore Engineering secured 30%, totaling 91 vessels, with an outstanding order backlog of 100 vessels for LNG carriers. Samsung Heavy Industries has an order backlog of 84 vessels, while Hanwha Ocean has 77.
If the Trump second administration increases investments related to LNG, it is expected to benefit the South Korean shipbuilding industry. According to Clarkson Research, a UK shipbuilding and shipping analysis firm, the United States will need 234 LNG carriers for its LNG projects by 2030. The industry anticipates these orders will be placed by 2027, and there is growing optimism that domestic companies will benefit as the U.S. Department of Defense has recently added Chinese companies to its blacklist.
Additionally, with the growth of data centers and the artificial intelligence (AI) industry, the demand for large-scale power supply is expected to expand the plant business for LNG production, storage, and unloading. Yang Jong-seok, a senior researcher at the Export-Import Bank of Korea, noted, "Due to the new U.S. administration's fossil fuel-first policy, orders for LNG carriers and large tankers from the U.S. are anticipated," adding that legislation such as the SHIPS for America Act, which aims to promote shipbuilding and port facilities, is expected to provide opportunities for the domestic shipbuilding industry.