Hanwha Ocean recorded a 23% operating profit margin in its shipbuilding segment during Q2, according to a May 28 report by Hana Securities. The company achieved revenue of 5.4432 trillion won and operating profit of 736.1 billion won, representing year-over-year increases of 65.2% and 101.7% respectively, surpassing market consensus. The performance improvement stemmed from the full recognition of liquefied natural gas (LNG) vessel sales ordered after 2024 and the commencement of large-scale projects including FSRU (floating storage and regasification units) and 24,000 TEU container vessels. Hana Securities analyst Yoo Jae-sun maintained the stock's target price at 175,000 won with a 'buy' rating, while the previous day's closing price stood at 88,800 won. The shipbuilding sector faces structural tailwinds from Middle East geopolitical conflicts driving energy supply chain diversification.
Hanwha Ocean Reports Q2 Revenue and Operating Profit Growth
Hanwha Ocean's Q2 revenue reached 5.4432 trillion won with operating profit of 736.1 billion won. These figures represented increases of 65.2% and 101.7% compared to the same period in the previous year. The results exceeded market consensus forecasts.
Commercial Vessel Segment Achieves 22.7% Profit Margin
The commercial vessel segment recorded a profit margin of 22.7% in Q2, marking a 4.7 percentage point increase from the previous quarter. LNG vessel sales ordered after 2024 contributed to this margin expansion as revenue recognition began in full. Construction of FSRU and 24,000 TEU container vessels entered full-scale production phases.
Energy Plant Segment Returns to Profitability
The energy plant segment turned profitable in Q2. Approximately 1.5 trillion won in revenue from offshore projects was recognized on a delivery basis during the quarter. The segment's profitability shift followed the completion of P79 FPSO (floating production storage and offloading) delivery.
Special Vessel Segment Records Continued Losses
The special vessel segment remained in deficit due to marketing costs and fixed cost burdens. The deficit amount decreased through cost reduction measures.
Hana Securities Maintains Target Price and Buy Rating
Hana Securities maintained Hanwha Ocean's target price at 175,000 won with a 'buy' investment rating on May 28. The previous day's closing price was 88,800 won. Analyst Yoo Jae-sun stated that fixed cost burdens in the special vessel and energy plant segments will persist in the second half, but profit trends can remain solid considering design and change order possibilities and incentive acquisition potential. Yoo noted that orders centered on very large crude carriers (VLCC) are expanding at price levels above market rates through selective order intake.
FAQ
What profit margin did Hanwha Ocean achieve in its shipbuilding segment during Q2?
Hanwha Ocean recorded a 23% operating profit margin in its shipbuilding segment during Q2, with the commercial vessel segment specifically achieving a 22.7% profit margin.
What were Hanwha Ocean's Q2 revenue and operating profit figures?
Hanwha Ocean reported Q2 revenue of 5.4432 trillion won and operating profit of 736.1 billion won, representing year-over-year increases of 65.2% and 101.7% respectively.
