Hanwha Ocean is forecast to surpass 500 billion won in quarterly operating profit for the first time in Q2, driven by expanded construction of high-priced liquefied natural gas (LNG) carriers. A consensus of eight major domestic securities firms projects Q2 revenue of 4.5841 trillion won, operating profit of 573.8 billion won, and net profit of 533.2 billion won. This represents year-over-year growth of 39.16% in revenue, 54.39% in operating profit, and 259.09% in net profit. The forecast marks a breakthrough from the 3 trillion won revenue range maintained since last year, simultaneously opening a 4 trillion won quarterly revenue era.
Hanwha Ocean Posts Record Q2 Earnings Forecast
Yonhap Infomax compiled the consensus from eight domestic securities firms that submitted Hanwha Ocean's Q2 earnings forecasts within the past month. The projected operating profit of 573.8 billion won would surpass the company's previous record of 441.1 billion won set in Q1. The maximum operating profit forecast among analysts reached 658 billion won. The consensus data indicates revenue growth of 39.16% compared to the same period last year, with operating profit and net profit increasing 54.39% and 259.09% respectively year-over-year.
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Source: Hanwha Ocean
Commercial Vessel Sector Drives Profit Growth
Securities analysts attribute the earnings improvement to the commercial vessel division. Increased delivery volumes resulted from higher operating days and improved productivity. Revenue recognition from high-priced projects ordered since 2023 has begun in earnest. The special vessel division is estimated to have posted an operating loss due to increased selling and administrative expenses and revenue reflection from low-profit projects.
Company Pursues Global Defense and Energy Projects
Hanwha Ocean recently did not secure the Canadian Patrol Submarine Project (CPSP). The company maintains defense contract pipelines with Saudi Arabia, Greece, and the Philippines. The U.S. Department of Defense issued a Request for Information (RFI). The Namibia Venus FPSO (Floating Production Storage and Offloading) project, valued at $3 billion, is expected to produce results at the end of this month. Han Seung-han, an analyst at SK Securities, stated that while the Canadian CPSP outcome was disappointing, the company holds naval vessel order pipelines with major global countries and expects share price momentum through orders based on submarine competitiveness proven in competition with Germany's TKMS.
Hanwha Ocean's stock closed at 76,800 won on the 14th. The average target price from securities firms that submitted consensus data is around 135,000 won.
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Hanwha Ocean stock price trend. Source: Yonhap Infomax screen number 5000
FAQ
What is Hanwha Ocean's forecast Q2 operating profit?
Hanwha Ocean is forecast to post 573.8 billion won in Q2 operating profit according to a consensus of eight domestic securities firms, marking the first time the company surpasses 500 billion won in quarterly operating profit.
Why did Hanwha Ocean's Q2 earnings improve?
The earnings improvement is attributed to the commercial vessel division, where increased delivery volumes from higher operating days and improved productivity combined with revenue recognition from high-priced LNG carrier projects ordered since 2023.
What is Hanwha Ocean's current stock price and target price?
Hanwha Ocean's stock closed at 76,800 won on the 14th, while the average target price from securities firms is around 135,000 won.
