Hanwha Ocean (042660.KS) has fully entered the bidding for Chile's naval modernization project, timed to coincide with President Lee Jae-myung's state visit to the country.
According to foreign media on the 27th, seven senior executives, including Hanwha Ocean President Jung In-seop and Executive Vice President Park Sung-woo, are accompanying President Lee on the visit. A Hanwha Ocean official told Infodefensa, a Latin American defense media outlet, "We are committed to participating as a long-term strategic partner in Chile's future submarine and frigate projects." The official added, "Our goal is to contribute beyond simple vessel construction to joint design, technology transfer, shipyard modernization, workforce development, and supply chain cooperation."
Hanwha Ocean is making strong efforts to win Chile's naval modernization project. The two 209-class 1,400-ton submarines operated by the Chilean Navy were commissioned in 1984 and have been in service for more than 40 years. The Chilean government is pursuing the introduction of new submarines to replace them, along with the separate construction of multipurpose frigates. Both projects emphasize maintenance and technology transfer, as well as construction within Chile's state-owned shipyard, making "localization" a key variable in the bidding.
Earlier, Hanwha Ocean unveiled the Chile-customized submarine "Ocean 2000" and frigate "Ocean 4500" at the "FIDAE 2026" defense exhibition in Santiago in April. It also signed a memorandum of understanding (MOU) with Chile's Austral University to support talent development.
Twenty-six senators from both ruling and opposition parties in Chile recently submitted a bipartisan resolution urging the establishment of a plan to prevent naval gaps, including the replacement of aging submarines. Local media noted that the request came in line with the timing of President Lee's visit, pointing out that "Hanwha Ocean, as a global player in conventional submarine construction, is in a position to submit a proposal for future orders." However, with the introduction of two submarines estimated to cost up to 900 million dollars, some assessments suggest that a confirmed order may be difficult within one to two years given Chile's fiscal conditions.
Meanwhile, Hanwha Ocean announced on the same day that it recorded second-quarter revenue of 5.4432 trillion won and operating profit of 736.1 billion won, driven by expanded orders centered on high-margin vessel types. Revenue surged 65% and operating profit jumped 98% from the same period last year, exceeding market forecasts of 4.12 trillion won in revenue and 534.7 billion won in operating profit. The sharp rise in revenue was largely due to the one-time reflection of approximately 1.5 trillion won in offshore project revenue. Operating profit increased significantly as improvements in ship prices and exchange rates, reduced material costs, and revenue recognition centered on high-margin projects overlapped.
