KSOE swings to loss in Q4, records 75% dip in annual OP in 2020

Korea Shipbuilding & Offshore Engineering (KSOE) representing Hyundai Heavy Industries and two other shipmaking units finished the fourth quarter in the red despite a flurry of orders in the year-end and reported a 74 percent plunge in income for full 2020 due to depressed global commerce amid pandemic crisis.

The shipbuilding holding entity of Hyundai Heavy Industries Group announced in a regulatory filing Thursday that it swung to an operating loss of 180.9 billion won ($161.8 million) during the October-December period last year from 40.7 billion won in operating profit a quarter ago. Sales rose 3.3 percent on quarter to 3.6 trillion won.

Net loss widened to 923.5 billion won from 77 billion won in the previous three months.

KSOE shares closed at 97,400 won, down 1.52 percent from the previous session.

For the full 2020, its operating profit plummeted 74.4 percent from a year ago to 74.4 billion won while revenue edged down 1.8 percent to 14.9 trillion won. Net figure turned to 835.2 billion won in the red from a black of 88.3 billion won a year earlier.

[Photo by Hyundai Heavy Industries Group]

The company said the poor results were caused by the industrial slump from the pandemic and foreign exchange losses. But it still managed to sustain operating profit for two straight years thanks to the increased orders for high value-added vessels and cost-cutting efforts.

The $3.6 billion worth orders the shipbuilder secured in December alone was not reflected to the latest earnings report.

“We have maintained the leadership position of Hyundai Heavy Industries Group based on our outstanding technology and ample experience despite virus-induced difficulties,” said an official from the company. “We will focus our capabilities on obtaining orders for ships with high added value and eco-friendly vessels whose demand is expected to grow in the market.”

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