Samsung Heavy Industries (SHI) continues to be in the red and reported an operating loss of KRW 255.8bn ($196m) for the period between April and June 2022.
The company also saw its sales revenue fell 16.9% to KRW 1.42trn.
Rising steel plate costs and “sluggish performance” due to sanctions on Russia were cited as reasons behind the company’s poor earnings.
It posted a loss of KRW 103.9bn and a 5.8% fall in sales volume to KRW 1.48trn.
According to reports by BusinessKorea, an analyst at KB Securities said Samsung has performed below market expectations.
He said the revenue achieved by the shipyard was 15.6% below market expectation while its operating loss amounted to three times the consensus figure of KRW 87.3bn and two times of KB Securities’ estimate of KRW 120.6bn.
“Disruptions to processes at the Russia LNG carrier project due to economic sanctions on Russia were behind the sluggish performance,” said KB Securities.
“Taking this into consideration, SHI has lowered its 2022 earnings revenue forecast from KRW 7trn to KRW6.3trn”.
KB Securities predicted that Samsung may continue to log further losses in the third quarter despite improvements in shipbuilding prices.
“The burden of fixed [shipbuilding] cost is expected to remain high amid sluggish revenue caused by a lack of shipbuilding volume.”
