Hanwha Ocean eyes Chile, Saudi Arabia, Greece and Thailand after Canada setback

Having put its disappointment over the Canada submarine program (CPSP) behind it, Hanwha Ocean is mounting a full-scale push to win back ground in the global market. The company plans to leverage the technology it demonstrated through its independently developed submarine to expand its naval defense footprint across multiple continents and accelerate overseas special-vessel contract wins. To that end, top executives have joined a state visit economic delegation, signaling a hands-on sales push as the company works to boost order intake in the second half of the year and secure long-term growth drivers.

During its second-quarter 2026 earnings conference call on Monday, Hanwha Ocean said that despite missing out on the Canadian submarine program, further opportunities remain in the global special-vessel market. A company official said reaching the final round against Germany — widely regarded as the world's top submarine builder — with an independently developed vessel "proves that our technology holds up on the world stage," adding that the company would use the capabilities and know-how gained from the bid to pursue new markets in Greece, Thailand, the Middle East and South America, while pressing ahead with future projects without disruption.

On how the company plans to use its warship production capacity now that the Canadian contract has fallen through, the official said talks are ongoing with potential customers in Africa, Europe and Asia. "Submarine export opportunities will keep coming, even if not immediately," the official said, and went on to say that if opportunities arise in the surface vessel segment in the United States, the company would deploy its full production capacity at Hanwha Ocean. The official added that having already secured the Korean next-generation destroyer (KDDX) program, the company plans to make maximum use of its entire special-vessel capacity.

Hanwha Ocean is expected to pursue significant contract opportunities in Thailand and Chile, among other markets. The company is considered a leading candidate for the Thai Navy's next-generation frigate program — a project to select a builder for a single 4,000-ton-class frigate valued at around 800 billion won ($546 million). If three follow-on vessels are subsequently ordered, the total program value could reach as much as 4 trillion won. Hanwha Ocean also has relevant experience in the Thai market, having successfully delivered a 3,700-ton-class frigate to Thailand during its previous incarnation as Daewoo Shipbuilding & Marine Engineering.

The company is also seeking new naval defense opportunities in South America. Seven senior executives, including President Jeong In-seop and Executive Director Park Seong-woo, are accompanying President Lee Jae-myung's state visit to Chile as part of the economic delegation. Hanwha Ocean is making an all-out effort to win contracts in Chile's naval modernization program, and Lee's visit is expected to help create a favorable environment for exports.

Chile is looking to replace two aging submarines that entered service in the 1980s and is also pursuing the construction of a multipurpose frigate. Hanwha Ocean showcased its Chile-tailored submarine "Ocean 2000" and frigate "Ocean 4500" at a defense exhibition in Santiago in April and has since signed an MOU with a local organization. President Jeong is scheduled to attend a Korea-Chile business roundtable in Santiago on Thursday, where he is expected to meet with local companies and discuss detailed cooperation arrangements.

Hanwha Ocean may also pursue contracts in Saudi Arabia and Greece, both identified as potential submarine buyers. Saudi Arabia is reported to be considering the acquisition of four to six submarines — estimated at around 5 trillion won — and five 6,000-ton-class frigates worth around 3 trillion won as part of a naval buildup, and Hanwha Ocean is reviewing participation in the submarine portion of that program. Greece is currently pursuing the procurement of at least four submarines, and Hanwha Ocean signed a strategic cooperation agreement with local shipbuilding and defense group ONEX in March, under which it agreed to participate as a partner in submarine programs tendered by the Greek Coast Guard and Navy.

Meanwhile, Hanwha Ocean's consolidated operating profit for the second quarter surged 98 percent year-on-year to a preliminary 736.1 billion won, delivering an earnings surprise. The result marks the highest operating profit in the company's history, including its years as Daewoo Shipbuilding & Marine Engineering before joining Hanwha Group. Sales for the same period jumped 65.2 percent to 5.44 trillion won, while net profit for the period skyrocketed 366.7 percent to 692.6 billion won.

The strong performance was driven by improved operational efficiency following production stabilization, revenue recognition centered on LNG carriers, and cost-reduction efforts. The special vessels division also significantly narrowed its operating loss through cost cuts and profitability improvement initiatives, despite ongoing selling, general and administrative expenses and fixed-cost burdens. The company said it is currently marketing berth slots through the first half of 2030 and expects order intake to improve further in the second half of this year. "Since Hanwha Ocean's launch, we have continued to raise work efficiency and cut costs, generating results from our cost-innovation drive," a company official said. "The trend of strengthening profitability and medium-to-long-term improvement is set to continue."