Korea Shipbuilding & Offshore Engineering: 1Q Net Profit Jumped
Korea Shipbuilding & Offshore Engineering Co.’s first-quarter net profit surged as it won more contracts with high value-added ships.
Net profit was 164.90 billion Korean won ($135.0 million) compared with KRW17.30 billion in the same quarter a year earlier, the South Korean company said Wednesday.
That beat a FactSet-provided consensus forecast for profit of KRW20.10 billion.
Revenue rose 20% to KRW3.945 trillion, while operating profit surged to KRW121.70 billion from KRW34.60 billion,
The company attributed the solid earnings largely to the deliveries of more liquefied natural gas carriers–usually valued more than other vessels.
It said a prolonged Covid-19 pandemic could result in a sharp decrease in future contract wins.
Some of its affiliated shipyards swung to profit in the quarter which also boosted profitability, Korea Shipbuilding said.
Source: Dow Jones