Seoul: Samsung Heavy Industries Co. reported a remarkable increase in its first-quarter net profit, which soared more than tenfold compared to the same period last year, fueled by robust sales. The company's net income for the January-March period reached 90.1 billion won (US$62.8 million), a significant rise from 7.8 billion won recorded a year earlier, as outlined in its regulatory filing.
According to Lao News Agency, the earnings surpassed market expectations, with analysts having predicted an average net profit of 60.6 billion won, based on a survey conducted by YonhapInfomax, the financial data arm of Yonhap News Agency. Samsung Heavy's operating profit also saw a substantial increase, jumping 58 percent year-on-year to 123.1 billion won, while sales rose by 6.2 percent to 2.49 trillion won.
The company attributed this success to "a significant improvement in profitability while maintaining the trend of sales expansion." Looking ahead, Samsung Heavy Industries expressed optimism for the remainder of the year, anticipating continued growth in offshore construction during the second half, which is expected to further boost operating profit.
The company is confident in meeting its annual earnings targets, which include 10.5 trillion won in sales and 630 billion won in operating profit, as established earlier this year. Thus far, Samsung Heavy has secured $2.2 billion worth of orders this year, representing 22 percent of its annual order target of $9.8 billion.
Samsung Heavy Industries also emphasized its strategy to continue diversifying its order portfolio, placing a focus on high-value ships such as liquefied natural gas (LNG) carriers and floating LNG facilities.