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[Alpha Biz=(Chicago) Reporter Kim Jisun] Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) posted a surplus in its first-quarter earnings announcement after being held in Hanwha's arms. It is the first surplus in 11 quarters since the fourth quarter of 2020.
Hanwha Ocean announced on the 25th that it posted sales of 1.9169 trillion won on a consolidated basis in the third quarter, resulting in operating profit of 74.1 billion won. Net profit also posted a surplus of 231.6 billion won. Sales increased 100% compared to the same period last year, and operating profit and net profit turned to surplus.
Hanwha Ocean plans to speed up its normalization of management with this surplus. Daewoo Shipbuilding & Marine Engineering Co. started anew to Hanwha Ocean in May after being acquired by Hanwha Group. The booming shipbuilding industry and the improvement of the management structure following the acquisition of Hanwha Group are believed to have worked.
The increase in the number of working days and the winning of the arbitration suit for the return of the advance payment for two drillships also affected the turnaround. The report said that operating profit increased due to the reversal of the valuation of inventory assets following the victory, and the reversal of interest returns and gains and losses in foreign exchange rates also had a positive impact on net profit during the term.
Hanwha Ocean currently has three years' worth of work. Of the remaining orders for 99 merchant ships as of October, 65 ships, or 66 percent, are profitable liquefied natural gas (LNG) carriers. Due to the nature of the backlog of orders, the company predicted that the surplus will continue in the fourth quarter.
Hanwha Ocean's consolidated assets totaled 13.3 trillion won at the end of the third quarter, debt totaled 10.6 trillion won and capital totaled 2.7 trillion won. The debt ratio was 397%, a significant improvement from 1,542% at the end of 2022. If the ongoing paid-in capital increase is completed, the debt ratio will be lowered to around 200%, the company expects.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
