Driven by the expansion of its overseas business and improved construction efficiency, LS Marine Solution more than tripled its operating profit year-on-year in Q3 this year, despite a decline in revenue.
LS Marine Solution announced on the 21st that it recorded consolidated revenue of 73.6 billion won and an operating profit of 6.9 billion won for Q3 this year. Revenue decreased by 4.3% compared to the same period last year (77 billion won), while operating profit surged 235% from 2.1 billion won. Cumulative results for the first three quarters reached a record high with revenue of 221.9 billion won and an operating profit of 17.2 billion won.
The improvement in performance was contributed by the subsea cable burial project (TPC2) for the Taiwan Power Company's offshore wind farm and the installation project for subsea communication cables in the Asia-Pacific region. Subsidiary LS Buildwin also boosted profitability by enhancing construction efficiency for subsea and underground cable projects in Asia and the Middle East.
The revenue decline was due to the fact that the subsea cable laying vessel GL2030 could not be deployed because of expansion work. The vessel has completed modifications to increase its loading capacity from 4,000 tons to 7,000 tons and is set to be deployed for this Malaysian project. It is evaluated that the company's capability to execute long-distance, large-capacity overseas projects has been strengthened, as it can now lay over 100 km of subsea cable continuously without interruption.
The order backlog stands at approximately 820 billion won on a consolidated basis, roughly 3.4 times the annual revenue of last year (244.2 billion won). Additional orders and revenue expansion are expected as the Shinan Uui and Taean offshore wind projects and the West Coast HVDC (High Voltage Direct Current) energy expressway project move into full-scale operation.
in INDUSTRY
