Hanwha Ocean’s Commercial Shipbuilding Profit Rises 54% to 471.8 Billion Won
Key Facts
Hanwha Ocean’s commercial shipbuilding division posted operating profit of 471.8 billion won in the third quarter of 2026, up 54% year over year, according to The Korea Herald. The division’s revenue rose 10% to 2.72 trillion won over the same period. The performance placed the commercial business at the forefront of the profit drivers cited by the newspaper in its report on the company’s results. But the company’s overall quarter-on-quarter comparison showed a decline, with revenue falling 37.3% and operating profit down 34% from the second quarter, according to Aju Press. The newspaper attributed the drop to fewer working days during the summer holidays, foreign exchange rate fluctuations and the absence of exceptional revenue recorded in the second quarter.
Year over year, the company’s operating margin improved to 14.2% in the third quarter, compared with 9.6% in the third quarter of 2025, according to Aju Press. The Korea Herald linked the commercial division’s performance to a 54% increase in operating profit and a 10% rise in revenue, figures that apply to the division, not the company as a whole. The annual margin comparison shows an improvement from the year-earlier period, while the quarterly comparison points to a decline in overall revenue and operating profit. According to Aju Press, that decline was tied to operational and financial factors and the absence of the exceptional revenue recorded in the previous quarter. The commercial division’s year-over-year trend thus differed from the direction of the company’s overall results between the two quarters.
Hanwha Ocean’s new orders totaled 7.72 billion dollars at the end of September 2026, including 8 liquefied natural gas carriers, 18 tankers, 6 container ships and 6 ammonia and liquefied petroleum gas carriers, according to Aju Press. The company said its commercial shipbuilding orders provide about three years of work. It also said it had achieved about 80% of its 2026 annual commercial ship order target of 8 billion dollars. These figures provide a picture of the order book’s size and its breakdown among the vessel types cited in the report. A company official said at the results conference that the company would not cut prices or chase orders simply to fill its order book.
In naval and military ships, the company posted an operating loss of 70.6 billion won in the third quarter, compared with a loss of 2.9 billion won in the previous quarter, according to Aju Press. The division’s revenue rose 11% quarter on quarter to 363 billion won. The company attributed the losses to higher fixed costs and increased estimated costs for some projects. It said it would work to improve results by cutting costs and seeking further contract adjustments. The widening loss alongside quarterly revenue growth highlights the division’s different performance from the profitability of commercial shipbuilding.
The company’s steps include accelerating construction of the second Jang Bogo-III Batch-II class submarine and the fifth and sixth Ulsan Batch-III class frigates, according to Aju Press. The report did not specify when these vessels would be completed or the timing of the measures related to costs and contracts. For the commercial division, The Korea Herald said the company expects profitability to continue as the share of revenue from higher-margin projects won since 2024 rises. It added that cost-cutting efforts would continue. The company’s announcements combine execution of naval and military projects with continued reliance on higher-margin commercial orders to support the commercial business’s profitability.