South Korean shipbuilder Hanwha Ocean has turnaround its first quarter returns by focusing on high value vessels and with some help from currency fluctuations.
Hanwha Ocean — which took over Daewoo Shipbuilding & Marine Engineering in May 2023 — logged a net profit of KRW 51bn ($37.1m) for the January to end-March period of this year, a turnaround on a loss of KRW 120.4bn in the same period of 2023.
The company attributed the healthier results to a focus on high value-added vessels such as LNG carriers and cost efficiency measures brought in since its takeover almost one year ago.
The figures were also aided by the depreciation of the Korean won which fell by an average of 4% against the US dollar during the quarter, compared to the previous year, increasing the value of export orders.
Hanwha Ocean pulled in newbuilding orders worth $3.4bn to date in 2024. These comprise 12 LNG carriers, two VLCCs, two ammonia carriers and one VLGC.
The shipbuilder is expecting further earnings improvements this year as it delivers newbuildings from its existing orderbook. These are set to include 22 LNG carriers in 2024 with a further 24 to follow in 2025.
Hanwha Ocean has also been branching out during its first year of operations.
Earlier in April the company announced it is setting up its own shipping company — Hanwha Shipping — to build “carbon-free” vessels that can help demonstrate the yard’s technology offerings.
Hanwha Shipping has been established with the participation of the shipbuilders US subsidiary USA Holdings.
The new shipowning company will focus on tonnage such as ammonia-fuelled vessels — the yard is developing a a carbon-free ammonia-based propulsion technology — to demonstrate that this type of vessel can be built and operated in a bid to convince shipowners who may be cautious about investing in new types of ships.
But the shipbuilder is not expected to start trading the vessels that it constructs under the new outfit.
In March parent conglomerate Hanwha Group launched a new engine manufacturing in a move on the marine propulsion sector.
Hanwha Engine was launched following the takeover of HSD Engine — a specialist in low-speed marine propulsion systems — which the group claims is the “world’s second-large marine engine company in terms of market share”.
