Hanwha Ocean posted a first-quarter earnings surprise, driven by a high-margin shipbuilding portfolio centered on liquefied natural gas carriers, as demand for alternative fuels strengthened amid Middle East-driven energy volatility.

According to the company’s earnings call Monday, operating profit for the January-March period rose 70.6 percent on-year to 441.1 billion won ($300 million), while revenue edged up 2.1 percent to 3.21 trillion won.

The “Lebretha,” the 200th LNG carrier constructed by Hanwha Ocean for SK Shipping (Hanwha Ocean) The “Lebretha,” the 200th LNG carrier constructed by Hanwha Ocean for SK Shipping (Hanwha Ocean)

Hanwha Ocean posted a first-quarter earnings surprise, driven by a high-margin shipbuilding portfolio centered on liquefied natural gas carriers, as demand for alternative fuels strengthened amid Middle East-driven energy volatility.

According to the company’s earnings call Monday, operating profit for the January-March period rose 70.6 percent on-year to 441.1 billion won ($300 million), while revenue edged up 2.1 percent to 3.21 trillion won.

The results exceeded market expectations of 3.29 trillion won in revenue and 375.6 billion won in operating profit.

Hanwha Ocean said high-margin LNG carriers were the primary driver of profit, supported by ongoing cost reductions, productivity gains and early vessel deliveries. Orders for high-value commercial vessels — particularly LNG carriers — have increased since 2023, while exposure to low-margin projects has declined.

The commercial shipbuilding division, which accounts for more than 70 percent of total revenue, is expected to maintain its focus on high-value vessels such as very large crude carriers, a key component of global oil transport, especially during supply disruptions.

The company expects the Middle East crisis to continue reshaping global energy supply chains, lengthening shipping routes for oil and gas and supporting demand for LNG carriers and tankers. Tighter environmental regulations and fleet renewal needs are also expected to underpin demand for eco-friendly, high-value vessels.

In the defense segment, Hanwha Ocean said it is stepping up efforts to secure major overseas projects, including Canada’s submarine program and South Korea’s next-generation destroyer project, known as KDDX.

The company also underscored its push into the US market. While monitoring potential regulatory changes in US Navy ship procurement, it is working with its wholly owned Philly Shipyard and Hanwha Defense USA to participate in the Next-Generation Logistics Ship program.

Meanwhile, Hanwha Ocean’s energy plant division is focusing on securing new global orders for floating LNG facilities and other offshore energy solutions.
Source: Korea Herald