Hanwha Ocean has reported a notable turnaround in its financial performance for the first half of 2024, according to a provisional performance disclosure based on consolidated standards. The company recorded sales of 4.82 trillion won (approximately $3.57 billion), reflecting a 47.8% increase compared to the same period last year. Operating profit reached 43.3 billion won, and net profit amounted to 23.6 billion won, both turning positive after a challenging previous year.
The robust sales growth was primarily driven by an increase in construction volume and the repeated production of high-value-added LNG carriers, which constituted over half of Hanwha Ocean’s total sales. Despite a slight deficit in the second quarter due to deficit container ships and increased outsourcing costs for production stabilization, the company managed to improve overall profitability. Cost reduction activities and favorable exchange rates also contributed to this positive outcome.
Looking ahead, Hanwha Ocean anticipates further improvement in profitability in the second half of the year, driven by the increased sales proportion of LNG carriers and the commencement of full-scale work on submarine maintenance and marine plants. The company has secured stable work for approximately three years, with first-half orders including 16 LNG carriers, 7 crude oil carriers, 2 ammonia carriers, 1 gas carrier, and 1 offshore unit, totaling 27 units worth $5.33 billion. This order amount has already surpassed last year’s performance of $3.52 billion.
To bolster its global competitiveness, Hanwha Ocean is making aggressive investments, including acquiring a stake in NextDecade for LNG sales and transportation, and purchasing a U.S. shipyard to enter the defense market. Additionally, by acquiring a stake in Dyna-Mac, a marine structure manufacturer in Singapore, Hanwha Ocean aims to enhance price competitiveness and strengthen its position in overseas bidding.
An official from Hanwha Ocean stated, “Investments are being expanded for stable workforce supply and production efficiency,” highlighting the company’s focus on improving profitability as construction of high-priced LNG carriers progresses.
