Seoul: Samsung Heavy Industries Co., a major shipbuilder based in South Korea, announced a notable increase in its net profit for the second quarter, nearly tripling compared to the same period last year. The company attributes this significant financial growth to an enhanced product mix and a rise in sales of high-value vessels.
According to Yonhap News Agency, the net profit for the three months ending in June soared to 212.4 billion won (US$155.3 million), up from 74 billion won in the previous year. This impressive growth was detailed in a regulatory filing by the company. A representative from Samsung Heavy emphasized that the increase in working days and a greater share of high-end ships in the sales portfolio played a crucial role in boosting the quarterly figures.
During the same period, Samsung Heavy's operating profit experienced a 56.7 percent increase, climbing to 204.8 billion won from 130.7 billion won. Meanwhile, sales witnessed a 6 percent rise, reaching 2.68 trillion won compared to 2.53 trillion won from the previous year.
For the first half of the current year, the company's net income nearly quadrupled, reaching 302.5 billion won from 81.8 billion won recorded a year ago. The operating profit also saw a 57.2 percent increase year-on-year, amounting to 327.9 billion won, while sales rose by 6.1 percent to 5.17 trillion won.
To date, Samsung Heavy Industries has secured orders worth US$3.3 billion, achieving 34 percent of its annual target of $9.8 billion. Last year, the company acquired $7.3 billion in orders. Given the current trends, Samsung Heavy anticipates meeting its annual guidance of 630 billion won in operating profit on 10.5 trillion won in sales.
The shipbuilder's order backlog, as of the end of June, stands at $26.5 billion, ensuring the company's shipyards remain operational at full capacity for the next three years.