South Korea’s largest shipbuilding group ended 2021 in the red, posting a fourth-quarter and full-year loss.
Figures released on Monday showed that Korea Shipbuilding & Offshore Engineering Co (KSOE) booked a net loss of KRW 675.3bn ($563m) for the last three months of the year.
It posted an operating loss of KRW 696.7bn for October to December, compared with a loss of KRW 180.9bn a year earlier. Revenue was up 24.7% to KRW 4.45trn.
The operating loss was 128.9% higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The red ink in the fourth quarter pushed KSOE to a full-year net loss of KRW 1.14trn, according to the regulatory filing.
It posted an operating loss of KRW 1.38trn for the year, compared with a profit of KRW 74.4bn in 2020. Annual revenue was up just 4% to KRW 15.49trn.
KSOE is the holding company for Hyundai Heavy Industries, Hyundai Mipo Dockyard and non-listed Hyundai Samho Heavy Industries.
Its yards have made a strong start to 2022 as shipowners retain their appetite for containership newbuildings.
The company has set an order target of $17.4bn for 2022, a figure 17% higher than last year’s $14.9bn target. It secured $22.8bn worth of orders in 2021, exceeding its target by about 53%.
At the start of this year, the European Union ruled against a planned $1.8bn merger between Hyundai Heavy Industries Holdings and Daewoo Shipbuilding & Marine Engineering.
The EU competition authorities said a merger of two of South Korea’s largest shipbuilding groups would dominate the market for LNG carrier newbuildings.
