SEOUL, February 04 (AJP) - Hanwha Ocean's operating profit nearly quadrupled in 2025 from a year earlier, driven by strong sales of liquefied natural gas (LNG) carriers and special-purpose vessels.
In a regulatory filing on Wednesday, the South Korean shipbuilder reported revenue of 12.69 trillion won ($9.5 billion) for 2025, up 18 percent from the previous year, while operating profit surged 366 percent to 1.11 trillion won.
The company attributed the earnings improvement to increased deliveries of high-margin LNG carriers and growth in its defense-related ship business.
Stabilized production boosted the contribution of LNG carriers within its commercial ship segment, while revenue from special-purpose vessels edged higher as construction progressed smoothly on the first three Jangbogo-III Batch-II submarines.
Operating profit also benefited from a product mix shift toward higher-value vessels, improved productivity following production stabilization and continued cost-reduction efforts.
Hanwha Ocean said that it has secured orders worth $10.05 billion so far this year, including contracts for 13 LNG carriers, 20 very large crude carriers and 17 container ships. Order intake increased from $8.98 billion a year earlier despite global orders for its core ship types falling to below 70 percent in vessel numbers, the company said.
The shipbuilder also gave a positive outlook for the year ahead. A company official said revenue growth is expected to continue as vessel prices, particularly for LNG carriers, remain elevated, while profitability should stay solid as revenue increasingly comes from higher-return projects.
Profitability is also expected to improve further as full-scale production begins on additional naval programs, including the second Jangbogo-III Batch-II submarine and the fifth and sixth Ulsan-class Batch-III frigates, alongside efforts to secure large overseas contracts, the official said.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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