Hanwha Ocean Co (A042660) Q3 2024 earnings summary

Executive summary

• Achieved 6.6% sequential sales growth in 3Q24, driven by higher LNG carrier sales and Plant division integration.

• Revenue for the first nine months of 2024 was ₩7,522.8 billion, up slightly year-over-year.

• Turned to profitability in Commercial Vessel and Naval Ship segments, while Offshore segment reduced losses but remained negative.

• Net loss attributable to shareholders was ₩51.2 billion, compared to a net profit of ₩160.0 billion in the prior year.

• Completed acquisition of Hanwha's plant business in July 2024, expanding business scope.

Financial highlights

• 3Q24 consolidated sales: KRW 2,703bn (+41.0% YoY, +6.6% QoQ); operating profit: KRW 26bn (OPM 0.9%).

• Gross profit for the nine months ended September 2024 was ₩344.9 billion, up from ₩62.1 billion YoY.

• Net profit: -KRW 75bn (turned to loss YoY and QoQ); basic and diluted EPS were negative at ₩225 per share.

• Cash and cash equivalents at period end were ₩1,016.6 billion, down from ₩1,799.3 billion at the end of 2023.

• Debt-to-equity ratio increased to 309% from 224% at year-end 2023.

Outlook and guidance

• Commercial Vessel sales expected to exceed 80% of total in 2025, with profit growth from high-priced LNGC deliveries.

• Management focused on selective, high-margin orders and expanding into new markets, including the U.S. and plant sectors.

• No specific quantitative guidance was provided for the remainder of 2024.