Seoul: Hanwha Ocean Co., a prominent South Korean shipbuilder, announced a return to profitability in the second quarter, supported by an uptick in working days and a higher proportion of orders for high-value ships.
According to Yonhap News Agency, the company reported a net profit of 148.5 billion won (US$106.7 million) for the three months ending in June, a significant turnaround from a net loss of 27.4 billion won in the same period the previous year, as disclosed in a regulatory filing.
"An increased ratio of value-added liquefied natural gas (LNG) carriers was reflected in the quarterly results. Additional working days also contributed to improved performance year-on-year," a company spokesperson stated.
The shipbuilder also recorded an operating profit of 371.7 billion won in the second quarter, reversing an operating loss of 9.7 billion won from the prior year. Sales for the period rose by 29.9 percent, reaching 3.29 trillion won, up from 2.54 trillion won.
"The company is focused on enhancing productivity through a stable production system and improving profitability via companywide cost-cutting initiatives," the company announced.
In the first half of the year, Hanwha Ocean's net income soared to 364.2 billion won from 23.6 billion won a year earlier. Operating profit surged to 630.3 billion won from 43.4 billion won, while sales increased by 33.6 percent, climbing to 6.43 trillion won from 4.81 trillion won.
Hanwha Ocean is part of Hanwha Group, a major South Korean conglomerate with interests across chemicals, energy, and defense industries.