South Korean shipbuilder Hanwha Ocean has boosted its first-half financial results by pulling in high-value LNG carrier orders.
The yard logged sales of KRW 4.82trn ($3.6bn) — a rise of almost 48% on the same period a year ago.
Net profit was also higher at KRW 23.6bn on an operating profit of KRW 43.3bn.
Hanwha Ocean logged orders for 16 LNG carriers — more than half of the 27 units booked in the first half.
Owners ordered 12 of these vessels on the back of contracts with QatarEnergy, while Adnoc Logistics & Services signed deals on the remaining four.
The shipbuilder also secured orders for seven crude oil tankers, two very large ammonia carriers, a gas carrier and an offshore unit in the first half.
The orders stack up at $5.3bn, a jump on the $3.5bn-worth of contracts secured in the whole of 2023.
Hanwha Ocean is expecting to increase its share of the LNG orderbook in the second half.
The South Korean press reported company officials as stating: “Investments are being expanded for stable workforce supply and production efficiency, and the production system has entered a stabilisation phase.
“As the construction of LNG carriers ordered at high prices progresses in earnest, we will focus all our capabilities on improving profitability.”
But the yard also faces LNG headaches. It is sitting on three Arc7 LNG carrier newbuildings that have been completed for its own account after former yard owner Daewoo Shipbuilding & Marine Engineering cancelled the contracts on them with Russian shipowner Sovcomflot.
The three vessels have since been sanctioned by the US.
Another trio of Arc7 LNG carriers is being built by Japan’s Mitsui OSK Lines at Hanwha Ocean against Russian charters, and although these ships are currently sanction-free, it is unclear how they will be delivered.
The shipbuilder, which was taken over by the Hanwha Group in May 2023, has been growing its global reach this year.
Hanwha Ocean and affiliates in the wider group have been investing in US LNG producer NextDecade and together will probably hold a combined stake of around 15%.
The company has been growing its naval expertise with partnerships, and in April 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.
The shipbuilder has also made several non-Korean management appointments in its global offices.
