Hanwha Ocean announced on April 24 that the company had achieved an operating income of 228.36 billion won (about $166 million) in the first quarter of this year, an increase of about 58.6 % compared with the same period last year; an operating profit of 52.9 billion won (about $38.36 billion), and a net profit of 51 billion won, which were both positive compared with the same period last year, turning a loss into a profit.
Hanwha Ocean said the improved performance in the first quarter of this year was attributed to increased capacity of high-value ship types such as liquefied natural gas (LNG) carriers, higher operating income, as well as improved profits and exchange rate effects. It is worth noting that the company’s three business segments, namely merchant vessels, specialized ship types and offshore, all achieved growth in operating income and profitability.
Hanwha Ocean’s latest quarterly results reflect the positive effects of its order selection strategy, which will see Hanwha Ocean’s LNG carrier capacity reach 22 vessels in 2024, the highest ever, and 24 vessels in 2025.
As early as October 2023, Hanwha Ocean had already announced that it would build four large LNG carriers in parallel at Hanwha Ocean’s Geoje Shipyard No. 1 Dock, and based on the construction of four LNG carriers, Hanwha Ocean’s Geoje Shipyard No. 1 Dock will continue to build this type of vessel, and No. 2 Dock will also build LNG carriers starting from 2024 onwards.
A Hanwha Ocean official said, “Since Hanwha Ocean was renamed and established, the company has been focusing on improving profitability through its order selection strategy and innovative activities, such as cost efficiency improvements in all business areas.”
So far this year, Hanwha Ocean has received orders for 17 new vessels valued at US$3.39 billion. By vessel type, including 12 LNG carriers, 2 Very Large Crude Carriers (VLCC) and 2 Very Large Liquid Ammonia Carriers (VLAC) and 1 Very Large Liquefied Petroleum Gas Carrier (VLGC).