Hanwha Ocean announced on the 29th that its operating profit for the second quarter (April to June) was 371.7 billion won, marking a return to profitability compared to the second quarter of last year. The increased proportion of high-value liquefied natural gas (LNG) carriers improved revenue.
Hanwha Ocean's second quarter sales reached 3.29 trillion won, a 29.9% increase compared to the second quarter of last year. The operating profit was 371.7 billion won, a turnaround from an operating loss of 9.7 billion won in the same period last year. The net profit also turned positive at 148.5 billion won.
Cumulative sales in the first half of the year (January to June) totaled 6.44 trillion won, a 33.6% increase compared to the same period last year, while the operating profit amounted to 630.3 billion won, reflecting a 1,355.7% increase.
Hanwha Ocean explained that the increase in sales was due to a rise in the number of operational days resulting from seasonal factors and the expansion of the proportion of high-revenue LNG carriers. The sales recognition ratio of container ships, which were ordered at low prices, decreased, while the sales contribution of high-profit LNG vessels increased, leading to improved revenue.
By business division, the commercial ship division continued to see growth in both revenue and profit due to the expanded sales proportion of LNG carriers. The special ship division experienced a slight decline in sales compared to the previous quarter as the construction of the Batch-II lead vessel for the Jangbogo-III submarine reached the final stages. However, the company's production of submarines and surface vessels, as well as maintenance, repair, and overhaul (MRO) services for the U.S. Navy, continued, maintaining profit margins. The marine division saw a slight increase in sales compared to the previous quarter.
Hanwha Ocean noted that it is continuously improving productivity through the stabilization of production and is pursuing the maximization of revenue alongside cost reduction activities.