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Hanwha Ocean sails to consensus-beating operating profit of $299.5M in Q1

Published: 27 Apr. 2026, 17:45 Updated: 27 Apr. 2026, 18:39

Hanwha Ocean's shipyard is seen in Geoje, South Gyeongsang on March 12. [YONHAP]

Hanwha Ocean posted a consensus-beating first quarter operating profit driven by high-value vessels and a currency market favorable to an exporter.

The shipmaker's consolidated operating profit from January to the end of March reached 441.1 billion won ($299.5 million), up 70.6 percent from the same period a year earlier, the company said in a regulatory filing on Monday. This far exceeded the market consensus estimate of 375 billion won, which had projected a 45 percent increase.

Revenue came in at 3.2 trillion won, in line with market expectations and up 2.1 percent from a year earlier.

While revenue remained relatively flat compared to last year, the sharp increase in operating profit reflects a qualitative improvement in the company’s profit structure.

About 87 percent of Hanwha Ocean’s revenue comes from commercial vessels. This year, the share of lower-priced orders secured in 2022 has declined, while higher-priced orders secured since 2024 have begun to be reflected in revenue, improving overall profitability.

In the first quarter alone, the company secured orders worth $2.45 billion, focusing on high-value vessels such as four liquefied natural gas carriers and seven very large crude carriers.

Exchange rate effects also contributed to the earnings growth, as shipbuilding contracts are typically denominated in dollars. The weaker won, trading at around 1,450 won per dollar in the first quarter, supported earnings.

Securities analysts estimate that exchange rate effects boosted revenue by about 44 billion won and operating profit by around 15 billion won compared to the previous quarter.

Following Hanwha Ocean’s results, the other two major Korean shipbuilders — Samsung Heavy Industries and HD Korea Shipbuilding & Offshore Engineering — are set to report their earnings on Thursday and on May 7, respectively.

Industry estimates suggest that the combined quarterly operating profit of the three major shipbuilders could approach a record 2 trillion won.

“The major shipbuilders are estimated to have already secured about 40 percent of last year’s total orders,” said Han Young-soo, an analyst at Samsung Securities. “Changes in the shipping and energy markets driven by the conflict in the Middle East could accelerate the industry’s recovery.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NAM YOON-SEO [[email protected]]