Samsung Heavy Industries said Thursday that it recorded revenue of 3.1504 trillion won and an operating profit of 338.4 billion won in the third quarter of this year. Compared to the same period last year, revenue increased by 20% and operating profit rose by 42%.
Although the number of working days decreased due to summer vacations and the Chuseok holiday, profitability showed a solid trend. The Q3 operating margin reached 10.7%, rising into double digits. The company explained that this was due to an increased revenue share from high-value-added vessels such as liquefied natural gas (LNG) carriers.
Cumulative revenue for the first three quarters of this year totaled 9.3 trillion won, with operating profit at 936.5 billion won. As the trend of improving performance continues, it appears that achieving the annual revenue target of 12.8 trillion won will be secure.
Order intake is also progressing smoothly. Since the beginning of this year, Samsung Heavy Industries has secured a total of 48 vessels and two floating liquefied natural gas production facilities (FLNGs), including 20 LNG carriers, worth $12.4 billion.
This accounts for 89% of the annual order intake target ($13.9 billion). The company is also aiming to secure additional large-scale offshore projects by year-end, such as the second unit of the U.S. Delphin FLNG and Canada's Western FLNG.
Market outlooks are also positive. With the diversification of the LNG supply chain, Africa, Latin America, and North America are emerging as new demand hubs, leading to expectations that FLNG project orders will continue beyond next year.
Geopolitical instability in the Middle East region and other external uncertainties remain variables. However, the company views medium- to long-term order demand for LNG carriers, its main vessel type, as solid, driven by the increase in global LNG cargo volume.
It also expects that container ship orders will continue due to fleet restructuring by shipping lines and demand for eco-friendly vessel replacements.
A Samsung Heavy Industries official said, "The trend of improving quarterly performance has continued since the beginning of this year. We will strengthen the foundation for qualitative growth centered on high-value-added product groups with technological competitiveness, such as LNG carriers and FLNGs."
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