South Korea's 'Big 3' shipbuilders post combined Q2 operating profit above W2.7tr

South Korea's three major shipbuilders posted a combined second-quarter operating profit exceeding 2.7 trillion won ($1.84 billion), driven by a growing share of high-value vessels such as LNG carriers.

According to filings with the Financial Supervisory Service's DART system Wednesday, HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean and Samsung Heavy Industries together recorded a preliminary combined operating profit of 2.71 trillion won for the second quarter, with combined sales reaching 17.6 trillion won. The results reflect full recognition of high-priced vessels ordered during the shipbuilding boom, alongside productivity improvements and a strategy of taking on only the most profitable orders.

HD Korea Shipbuilding & Offshore Engineering posted a second-quarter operating profit of 1.65 trillion won on a consolidated basis, up 72.5 percent from a year earlier. Sales rose 20.2 percent to 8.93 trillion won, while net profit surged 256.6 percent to 1.59 trillion won. The company said productivity gains, a higher share of high-priced vessel sales and a profitability-focused selective ordering strategy drove the earnings improvement.

Hanwha Ocean reported a second-quarter operating profit of 736.1 billion won, up 98 percent from a year earlier. Sales climbed 65.2 percent to 5.44 trillion won, and net profit rose 366.4 percent to 692.6 billion won. Improved profitability in its commercial vessel and offshore businesses led the growth. The operating profit increase reflected a combination of favorable external conditions — including higher vessel prices and a supportive exchange rate — as well as internal cost-reduction efforts such as lower material costs and productivity gains. Full-scale revenue recognition of high-margin projects and optimization of vessel mix and unit pricing also contributed.

Samsung Heavy Industries posted a second-quarter operating profit of 325 billion won, up 58.7 percent from a year earlier. Sales grew 20.4 percent to 3.23 trillion won, while net profit rose 4.9 percent to 222.8 billion won. Industry watchers expect solid earnings momentum to continue in the second half of the year as the share of high-priced vessels such as LNG carriers in the construction pipeline keeps growing.