South Korean shipbuilders still in the red

Sarah Carter
Sarah Carter

23 February 2018


South Korea's leading shipbuilders and one of its shipping firms have been mired in losses due to unsuccessful restructuring efforts, Yonhap reported quoting industry data. The shipyards continue to struggle with the consequences of the global crisis, despite some recent successes and new orders from the large ship segment. South Korea’s largest shipbuilder Hyundai Heavy Industries Co. finished the fourth quarter of 2017 in the red, hit by a strong won and higher prices of steel plate supplies. HHI posted an operating loss of 342.2 billion won ($316.1 million) in the quarter ended December. Sales were down 32.9 percent on year to 3.39 trillion won. Hyundai Heavy Industries said its net loss came to 93.4 billion won in 2017, compared with a net profit of 15.5 billion won in 2016. South Korea’s second-largest shipbuilder Samsung Heavy Industries (SHI) has been in the red for a third consecutive year, with a wider loss for 2017. SHI incurred a KRW340.7 billion (USD319.6 million) loss, compared with a KRW138.8 billion loss for 2016. Samsung Heavy Industries Co. said its net loss grew to 340.7 billion won in 2017 from a loss of 138.8 billion won in 2016. The cumulative net loss of Daewoo Shipbuilding & Marine Engineering Co., a major South Korean shipbuilder, came to more than 7 trillion (US$6.5 billion) from fiscal year 2012 through 2016, said the report.