Korea-listed shipbuilding major Samsung Heavy Industries (SHI) reported a net profit of KRW 51 billion (USD 45 million) for the third quarter of 2015.
According to Bloomberg, Samsung Heavy’s net income more than doubled analysts’ estimates. As reported, SHI’s profit was also attributed to a payment from an undisclosed client who requested changes in an offshore project in Australia.
Namely, analysts expected SHI’s net profit to average at KRW 22.2 billion.
Even though SHI remained in black, the results show a major drop in earnings, namely of 70.7 percent, when compared to last year’s figures, when the company’s net profit was KRW 172.4 billion.
The overall industry downturn and delays in construction of vessels for the offshore industry have been identified as the main factors that pushed the earnings down.
Samsung Heavy’s operating income also took a blow with 53.4 percent fall to KRW 84.6 billion from 181.5 billion reported in the corresponding period in 2014.Nevertheless, these figures are again above the expected operating profit of KRW 13.6 billion.
The shipbuilder’s sales fell by 25.3 percent year-on-year amounting to KRW 2.44 trillion from last year’s KRW 3.2 trillion, based on the company’s stock exchange filing.
World Maritime News Staff