Three Korean Shipbuilders Post Combined Operating Profit of 2.2713 Trillion Won in Third Quarter
Key Facts
Combined operating profit at HD Korea Shipbuilding, Hanwha Ocean and Samsung Heavy Industries was about 2.2713 trillion won in the third quarter of 2026, according to the Chosun Ilbo. The result came as HD Korea’s operating profit rose 37.3% year over year and Samsung Heavy’s profit increased 42.1%. The figures showed a contrast between annual growth and quarterly pressures faced by some companies. HD Korea’s operating profit fell about 12% from the previous quarter, while Hanwha Ocean’s revenue and operating profit declined 37% and 34%, respectively. The companies’ performance was underpinned by high-value ship revenue, while operating costs and foreign exchange continued to affect results.
HD Korea reported revenue of 8.2862 trillion won, up 9.3% from the same period a year earlier, and operating profit of 1.4472 trillion won. The company attributed the improvement to higher vessel prices and productivity gains, as well as strong performance in its engines and machinery and offshore facilities businesses. But operating profit fell quarter over quarter, indicating that annual growth did not prevent the impact of short-term factors. HD Korea estimated that foreign-exchange movements reduced operating profit by 70 billion won during the quarter. It also estimated that fewer working days cut profit by a further 50 billion won.
At Samsung Heavy, revenue rose to 3.1504 trillion won, up 19.6% year over year, while operating profit reached 338.4 billion won. Operating profit grew 42.1%, outpacing revenue growth, and the operating margin reached 10.7%. A company official said, "The trend of improving quarterly results continued through the year." The company tied its growth plans to high-value products, led by liquefied natural gas carriers and floating LNG production, storage and offloading units. In 2026 through October 29, it won orders that included 20 LNG carriers and two floating production vessels, among 48 vessels valued at $12.4 billion.
Samsung Heavy’s orders totaled $12.4 billion through October 29, equivalent to 89% of its annual target of $13.9 billion. The company said it aims to win major offshore projects before year-end, including a second floating production unit for the Delfin project in the United States and the Western Canada FLNG project. Its order book reflects its continued focus on LNG carriers and floating production units, products the company has linked to supporting growth. Meanwhile, the Chosun report said revenue from high-value vessels, including LNG carriers secured at elevated prices in the past, partly offset cost burdens. The report also cited foreign-exchange movements, fewer working days and labor disputes among the pressures facing the sector.
Hanwha Ocean’s revenue and operating profit fell 37% and 34%, respectively, quarter over quarter, despite a 471.8 billion won operating profit from its commercial ship business on revenue of 2.715 trillion won. The special-purpose ship business’ loss widened to 70.6 billion won in the third quarter, compared with a loss of 2.9 billion won in the second quarter. The company attributed the loss to fixed-cost burdens. By contrast, its energy and facilities business returned to profitability, posting operating profit of 91.4 billion won on revenue of 527.5 billion won. Revenue in the segment rose 94% year over year, supported by additional revenue from an adjustment to the schedule of a floating production, storage and offloading vessel project and revenue from drilling-vessel leases.
A Hanwha Ocean official said, "Demand for new shipbuilding, particularly energy vessels, will remain solid," citing the reorganization of energy supply chains and demand to replace aging vessels. The company forecast that profitability in commercial shipbuilding would remain solid as the share of higher-margin projects it has won since 2024 expands. But it said costs associated with wage settlements and annual bonuses could weigh on fourth-quarter profitability. On labor relations, management and workers at HD Hyundai Heavy Industries reached a final agreement on wages and collective bargaining on October 27, following partial strikes and protests. On the same day, Hanwha Ocean management and workers reached a tentative agreement on a base-pay increase.