Hanwha Ocean reports 159.1 billion won loss in Q2

Hanwha Ocean, formerly known as Daewoo Shipbuilding & Marine Engineering (DSME), failed to make a turnaround in the second quarter mainly due to one-off costs such as higher outsourcing costs and higher wages.

Hanwha Ocean's Okpo shipyard in Geoje, South Gyeongsang [YONHAP]

Hanwha Ocean, formerly known as Daewoo Shipbuilding & Marine Engineering (DSME), failed to make a turnaround in the second quarter mainly due to one-off costs such as higher outsourcing costs and higher wages.

Hanwha Ocean posted a 159.1 billion won ($120 million) operating loss in the second quarter of 2022, far more than the market expectation of 16.8 billion won loss compiled by market tracker FnGuide.

It is the 11th consecutive quarterly operating loss for the Korean shipyard.

Revenue rose 53.8 percent to 1.82 trillion won but was lower than the market expectation of 1.96 trillion won.

The Korean shipyard blamed a one-off cost for the underperformed earning report.

"Spending on outsourcing costs for increased orders of blocks to meet the production schedules rose, as well as one-time settlement of a wage system due to a change in a personnel management system," it said in Monday's statement.

"Hanwha Ocean is constantly making efforts to swing to profit within the year."

DSME changed its name to Hanwha Ocean after it became part of the Hanwha Group in May.

BY SARAH CHEA [chea.sarah@joongang.co.kr]