Samsung Heavy Industries (010140) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 increased 29.2% year-over-year to KRW 7,202.7 billion, driven by strong performance in shipbuilding and offshore segments.

• Operating income rose to KRW 328.5 billion from KRW 233.3 billion in the prior year, with net income attributable to controlling interests at KRW 160.5 billion, up from KRW 75.1 billion.

• Shipbuilding and offshore accounted for 91.5% of sales, with construction at 8.5%.

Financial highlights

• Total assets at quarter-end were KRW 15,076 billion, with equity of KRW 3,769 billion and liabilities of KRW 11,345 billion.

• Gross margin improved to 8.6% from 6.9% year-over-year.

• Cash and cash equivalents stood at KRW 630.5 billion, up from KRW 583.8 billion at the previous year-end.

• Order backlog reached KRW 314,117 billion, with new orders of KRW 525,415 billion and deliveries of KRW 211,298 billion.

Outlook and guidance

• The global shipbuilding market remains robust, with increased demand for LNG carriers, tankers, and container ships.

• The company is focusing on high-value-added vessels and digital, eco-friendly technologies to maintain competitiveness.

• Construction sector faces continued uncertainty due to weak domestic demand and financing risks.