Hanwha Ocean reported a 22% sequential decline in third-quarter operating profit as an offshore incident and reduced working days offset gains from its commercial vessel operations. The Geoje-based shipbuilder posted operating profit of ₩290 billion ($207 million) on revenue of ₩3.02 trillion ($2.16 billion) for the three months ended September, according to preliminary results released Monday.
The quarter-on-quarter profit drop reflected higher fixed costs and a one-time loss from an FPSO incident in the offshore division, which swung to a ₩48 billion operating loss. Revenue fell 8% from the previous quarter due to fewer working days, including the summer shutdown period.
The company’s commercial vessel business, which accounts for more than 80% of revenue, maintained a 12.5% operating margin despite the headwinds. LNG carrier construction drove profitability, though management cited fixed cost pressures.
Naval ship revenue jumped 58% sequentially to ₩375 billion as work progressed on Jangbogo-III Batch-II submarines. The company holds submarine contracts worth ₩5.3 trillion in its backlog.
Net income turned positive at ₩269 billion ($192 million) compared with a year-earlier loss, though margins remain under pressure as the company navigates market uncertainty from delayed environmental regulations and geopolitical tensions.
