Korea Shipbuilding's net up 64 pct in Q3 2022 - Yonhap
Korea Shipbuilding & Offshore Engineering Co. (KSOE) said Thursday its third-quarter earnings jumped more than 60 percent on-year on more orders for high-priced vessels and cost-cutting efforts, according to Yonhap.
Consolidated net profit came to 315.9 billion won (US$222.1 million) in the July-September period, up 64 percent from a year earlier, the world's top shipbuilder said in a regulatory filing.
Sales rose 19.9 percent on-year to 4.26 trillion won, with its operating income swelling 33.2 percent to 188.8 billion won.
It represents KSOE's first operating profit in four quarters.
KSOE lost money for three quarters running due to the so-called heavy-tail payment system, in which more of the money for a contract is paid at the time of delivery, and increased loss reserves.
Despite domestic and foreign negatives, KSOE said it posted an operating profit in the third quarter thanks to an improved portfolio of ship orders and efforts to cut costs.
KSOE, a subholding company of shipbuilding, oil refining and machinery conglomerate HD Hyundai, has three major affiliates -- Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co. and Hyundai Samho Heavy Industries Co.
Sales by KSOE's flagship shipbuilding sector climbed 18.7 percent on-year to 3.56 trillion won in the last quarter on the back of a rise in orders for liquefied natural gas carriers and a weaker local currency, with its operating profit rising 16.6 percent to 221.5 billion won.
KSOE also has such business areas as maritime and offshore plants, engines and machinery.
So far this year, KSOE has clinched $22.15 billion worth of orders for 186 ships, or 127 percent of its yearly order target of $17.44 billion.
