Seoul: Samsung Heavy Industries Co., a major South Korean shipbuilder, said Thursday it third-quarter net profit nearly doubled from a year earlier, driven by an improved product mix and increased sales of high-value vessels. Net profit for the three months ended in September surged to 140.3 billion won (US$97.5 million) from 71.4 billion won in the same period last year, the company said in a regulatory filing.
According to Yonhap News Agency, operating profit jumped 98.6 percent to 238.1 billion won from 119.9 billion won during the cited period. Sales rose 13.4 percent to 2.63 trillion won from 2.32 trillion won. The operating profit was 10.2 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. The estimate of net profit was not available.
Samsung Heavy attributed the improved performance to high-value ship orders and offshore projects. The company said it expects further earnings improvement in the fourth quarter as deliveries of high-value ships increase. The shipbuilder has secured orders worth about $5 billion for 27 vessels this year, including seven liquefied natural gas (LNG) carriers.
"Considering the current progress in both ship and offshore orders, we are confident in achieving this year's targets and further improving profitability," a Samsung Heavy official said.