SEOUL: Hanwha Ocean Co., a major shipbuilder in South Korea, revealed on Tuesday that it experienced a net loss in the third quarter attributed to a one-off currency effect. The company reported a consolidated net loss of 74.8 billion won (US$54.1 million) for the July-September period, a stark contrast to the profit of 231.6 billion won recorded during the same period last year, as stated in a regulatory filing.
According to Yonhap News Agency, Hanwha Ocean’s operating profit also saw a significant decline, falling 65.5 percent year-on-year to 25.6 billion won. Despite this, the company achieved a notable 41 percent increase in sales, reaching 2.7 trillion won for the quarter. The operating profit was, however, 62 percent below the average estimate based on a survey conducted by Yonhap Infomax, the financial data division of Yonhap News Agency.
Hanwha Ocean pointed to the strong local currency as the primary reason for its weakened financial results, which negatively impacted the valuation of its foreign c
urrency assets. Nevertheless, the company anticipates improvements in the next quarter, as the Korean won has been depreciating against the U.S. dollar, which may enhance asset valuations.
The substantial rise in quarterly sales was largely fueled by the company’s liquefied natural gas carriers and the plant business acquired from Hanwha Corp. Furthermore, Hanwha Ocean has secured US$7.36 billion in new orders so far this year, showcasing its robust order book.
Formerly known as Daewoo Shipbuilding and Marine Engineering Co., Hanwha Ocean launched as the shipbuilding arm of Hanwha Group last year, continuing its legacy in the global shipbuilding industry.