Seoul: Samsung Heavy Industries Co. announced a substantial increase in its first-quarter net profit, exceeding a tenfold rise from the previous year, driven by robust sales performance. Net income for the January-March period reached 90.1 billion won (US$62.8 million), a significant jump from 7.8 billion won recorded in the same period last year, as stated in the company's regulatory filing.
According to Yonhap News Agency, the company's earnings surpassed market expectations, with analysts predicting an average net profit of 60.6 billion won, based on a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. Additionally, Samsung Heavy Industries reported a 58 percent increase in operating profit, reaching 123.1 billion won, and a 6.2 percent rise in sales, amounting to 2.49 trillion won.
The company attributed this remarkable performance to improved profitability and sustained sales growth. Samsung Heavy Industries is optimistic about achieving its annual earnings targets of 10.5 trillion won in sales and 630 billion won in operating profit, anticipating continued growth in offshore construction in the latter half of the year to further bolster operating profit.
To date, Samsung Heavy Industries has secured $2.2 billion in orders, representing 22 percent of its annual order target of $9.8 billion. The company aims to diversify its order portfolio, placing emphasis on high-value ships like liquefied natural gas (LNG) carriers and floating LNG facilities, signaling a strategic focus on expanding its market presence in these sectors.