Hanwha Ocean (042660.KS) posted a sharp rise in operating profit, driven by an expansion in orders centered on high-margin vessel types.
Hanwha Ocean reported second-quarter revenue of 5.4432 trillion won and operating profit of 736.1 billion won, up 65% and 98% respectively from a year earlier, the company said in a regulatory filing on the 27th.
Revenue grew significantly as about 1.5 trillion won in offshore project revenue was recognized at once during the quarter. The company explained that improved operational efficiency from stabilized production and expanded construction volume also supported revenue growth. Operating profit was boosted by a combination of factors, including improved external conditions such as ship prices and exchange rates, along with cost-reduction efforts such as lower material costs and higher productivity. Revenue recognition centered on high-margin projects such as liquefied natural gas (LNG) carriers, as well as optimization of volume and unit prices by vessel type, also contributed to the improvement in profitability.
Order performance has continued to show a solid trend. In the first half of this year, Hanwha Ocean secured orders worth about 4.35 billion dollars, including six LNG carriers, 15 very large crude carriers (VLCCs), three very large ammonia carriers (VLACs), and one wind turbine installation vessel (WTIV).
