South Korea’s shipbuilder Hyundai Heavy Industries has set its sights on reaching USD 7.52 billion in sales during 2018.
According to the company’s stock exchange filing, the yearly target stands at KRW 7.99 trillion, significantly less than the 2017 goal of KRW 10 trillion in sales.
HHI’s 2018 sales target represents a 60 percent decline from the one a decade ago. The lower aim was set on the back of a decline in order backlogs, which is expected to continue this year as well.
In his speech for 2018, Hyundai Heavy President and CEO, Kang Hwan-goo, suggested that the shipbuilding sector could face difficulties never witnessed before, Yonhap News Agency informed.
The crisis is expected to come amid dwindling order backlogs as building work for offshore plants could completely run out in a few months.
In an effort to improve its financial structure, in late December the South Korean major unveiled its plans to raise KRW 1.3 trillion via a share issue.
At the time, the company said it intends to sell a total of 12.5 million shares by March 2018. Some KRW 869 billion from the share sale would be used for operating funds.
World Maritime News Staff