EL7.AI
StocksMedium•28 October 2026•
3 min read

Hanwha Ocean Posts 485.7 Billion Won in Operating Profit Amid Offshore Shipbuilding Losses

Key Facts

1Hanwha Ocean's new orders totaled $7.72 billion at the end of September and included 8 liquefied natural gas carriers, 18 tankers, 6 container ships and 6 ammonia and liquefied petroleum gas carriers.
2Hanwha Ocean's offshore shipbuilding business posted an operating loss of 70.6 billion won, compared with 2.9 billion won in the previous quarter.
3Hanwha Ocean's revenue rose 12.9% year over year in the third quarter, but fell 37.3% quarter on quarter, while operating profit declined 34% from the previous quarter.
4Hanwha Ocean's operating profit margin was 14.2% in the third quarter, compared with 9.6% a year earlier.

The quarter-on-quarter comparison, however, painted a weaker picture: revenue fell 37.3% and operating profit declined 34% from the second quarter, according to Aju Press. The results reflect diverging performance between higher-priced commercial shipbuilding and pressure in other activities, while the increase in operating profit alone does not tell the story of every company segment.

The operating profit margin improved to 14.2% in the third quarter, compared with 9.6% in the same period a year earlier, according to Aju Press. The report attributed profit growth to higher-priced commercial orders, while Hanwha Ocean's total new orders reached $7.72 billion at the end of September. These orders included 8 liquefied natural gas carriers, 18 tankers, 6 container ships and 6 ammonia and liquefied petroleum gas carriers. The mix highlights specialized commercial vessels in the order book, alongside tankers and container ships.

The company said it had commercial shipbuilding orders covering about three years and had achieved about 80% of its annual target of $8 billion. It added that it would not cut prices or aggressively pursue orders simply to expand its order book, noting that additional projects remained under discussion for the rest of the year. It said: "We will not cut prices or aggressively pursue orders simply to fill the order book; sufficient projects remain under discussion for the rest of the year." This means the company is making order selection and pricing part of its stated policy as it works to meet its annual target.

By contrast, Hanwha Ocean's offshore shipbuilding business 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. Revenue in the segment rose 11% quarter on quarter to 363 billion won, according to Aju Press. The widening loss despite higher revenue shows that improved sales in offshore operations did not prevent a deterioration in operating performance during the quarter. The segment's performance differs from the growth in overall operating profit and makes the company's results dependent on diverging performance across its businesses.

Hanwha Ocean said it would work to improve the offshore shipbuilding segment's results by accelerating construction of the second Jangbogo-III Batch-II submarine and the fifth and sixth Ulsan Batch-III frigates. Its plan also includes cutting costs and seeking further contract adjustments. The company said the segment's results would be improved by accelerating construction of these vessels and implementing cost controls, following the widening operating loss in the third quarter. The company did not specify a timeline for completing these measures in its statement.

Korean companies' results come as China advances in terms of global order volume. The Clarkson Newbuilding Price Index stood at 186.59 points at the end of September, up 0.25 points from August and 23% above September 2021, according to The Herald Business. These figures put profit growth and rising ship prices up against the challenge of competing for market share, while the order measure here remains based on volume in CGT.