en.Wedoany.com Reported - South Korea's Hanwha Ocean Co. reported its first-quarter results, with net profit surging 131.8% year-on-year to 500 billion won (approximately $340 million). Operating profit increased from 258.6 billion won to 441.1 billion won (approximately $300 million). Sales edged up 2.1% to 3.2 trillion won (approximately $2.18 billion), with growth primarily driven by margin expansion.
The company attributed the profit growth to improved serial construction efficiency, early deliveries, and cost reductions. The direct cost impact of the Middle East conflict was assessed as limited, with LNG carriers built for Qatar being delivered on schedule. Hanwha Ocean also stated that the first-quarter performance should not be extrapolated for the full year due to external volatility factors.
In terms of vessel demand, Hanwha Ocean maintained a cautious outlook. In the very large crude carrier (VLCC) segment, demand has been disrupted as freight rates rose due to crude oil tankers being stranded in the Strait of Hormuz. Container ship demand is expected to weaken as inflation and slowing global economic growth pressure trade. In the long term, demand is expected to strengthen as countries diversify their sources of crude supply.
By order year, approximately 10% of 2026 revenue expectations come from 2022 orders, 15% from 2023 orders, 40% from 2024 orders, and 30% from 2025 orders. For military vessels, fixed cost pressure could be alleviated if the KDDX surface combatant ship order is secured in the second or third quarter. Remaining change orders from the US maintenance, repair, and overhaul (MRO) business are expected to be recognized in the second quarter earnings. Early deliveries achieved limited compensation only through违约金 negotiations, and the hedging policy remains unchanged.
Hanwha Ocean Co., Ltd. is a South Korea-registered shipbuilding and offshore engineering company, with businesses covering the construction of merchant vessels, offshore platforms, and military ships, as well as MRO services. Its parent company, Hanwha Group, is headquartered in Seoul, South Korea, with operations spanning aerospace and defense, energy, petrochemicals, and financial services.
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