Red ink second quarter for two Korean shipbuilding giants

Written by Nick Blenkey
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JULY 24, 2017 — South Korean shipbuilders Hyundai Heavy Industries and Samsung Heavy Industries both reported second quarter losses Monday.

Yonhap news agency reported Hyundai Heavy, the world’s largest shipbuilder by sales volume, as saying in a regulatory filing that it posted a net loss of 233.7 billion won (US$206.7 million) in the three months ending June 30, compared with a net profit of 182.8 billion won a year earlier.

Samsung Heavy Industries Co., the world’s third-biggest shipbuilder by sales, said in a regulatory filing that it posted a net loss of 142.7 billion won (US$126 million) in the three months that ended on June 30 compared with a net profit of 22.7 billion won a year earlier.

Hyundai Heavy said the net loss was attributable to higher thick steel plate prices and one-off costs stemming from a retirement program for 700 employees, reports Yonhap.

Separately, Hyundai Heavy said it has received US$7.9 billion worth of ship orders for 92 vessels so far this year.

Samsung Heavy said its bottom line was hit by increased fixed costs and losses stemming from a delay in the delivery of a drill ship.

Samsung Heavy said it has received US$2.9 billion worth of ship orders for 29 vessels so far this year.

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