Hanwha Ocean Co (042660) Q4 2024 earnings summary

Executive summary

• Achieved consolidated sales of 10,776 Bn KRW in 2024, up 45% year-over-year, with operating profit turning positive at 238 Bn KRW from a loss in 2023.

• All major business segments—Commercial Vessel, Naval Ship, and Offshore—reported sales and profit growth, with Commercial Vessel leading at 8,682 Bn KRW sales.

• Fourth quarter saw strong sequential growth, with sales up 20% quarter-over-quarter and operating profit up 560%.

Financial highlights

• 2024 operating profit margin reached 2.2%, with net profit at 525 Bn KRW (4.9% margin), a significant turnaround from the previous year.

• Commercial Vessel segment sales rose 49% year-over-year, Naval Ship 19%, and Offshore 12%.

• 4Q24 operating profit was 169 Bn KRW (5.2% margin), with all segments turning to profit compared to losses in 4Q23.

• Net debt increased sharply to 4,396 Bn KRW, and total liabilities rose 35% year-over-year.

Outlook and guidance

• Commercial Vessel division expects to maintain 60–70% of total sales in 2025, driven by LNG carrier revenue and improved profitability.

• Naval Ship segment anticipates annual sales surpassing 1 trillion KRW, led by new submarine projects and U.S. MRO business.

• Offshore segment projects sales to remain at 2024 levels despite a temporary workload decline, with annual profit expected.