Hyundai Heavy Industry Lost Orders In The First Quarter Far Below The Target

- May 09, 2018 -

 In the first quarter of this year, Hyundai Heavy Industries Group received orders of only 2.7 billion U.S. dollars, far below the annual target of 13.2 billion U.S. dollars. Due to the reduction of orders and foreign exchange losses, Hyundai Heavy Industry incurred a net loss in the first quarter.

 

Hyundai Heavy Industries Group (including modern Sanhu Heavy Industry, Hyundai Uepu Shipbuilding) recently released its first-quarter operating results, and Hyundai Heavy Industries posted a net loss of 132.1 billion won (approximately US$123 million), compared with a net profit of 114.1 billion won in the same period last year. At the same time, sales fell 29.4% to 3.042 trillion won. Operating loss reached 123.8 billion won, compared with 141.5 billion won in the same period last year. butt welding elbow

 

Hyundai Heavy Industries believes that the main reasons affecting the first quarter's performance are the impairment loss caused by the closure of the Gunsan Shipyard, the green energy business, and the cost of ship withdrawals of up to 9.7 billion won and exchange loss of 55.6 billion won.

 

As of the end of March, Hyundai Heavy Industries Group received a total of 2.7 billion U.S. dollars worth of orders for new ships, and the target for the whole year was 13.2 billion U.S. dollars. Hyundai Heavy Industry attributed the drop in order to the increase in ship prices, rather than the decrease in demand for newbuildings. The management of Hyundai Heavy Industries pointed out that the price of ships negotiated recently has increased by about 7%, which is the main reason for the decrease in orders. foring flanges

 

Hyundai Heavy Industries said that the shipbuilding market is accelerating recovery, the market outlook continues to rise, and it is expected that there will be more orders for new ships with higher ship prices. Recently, Hyundai Uepo Shipbuilding received an order for an MR-type product tanker, which cost US$42 million each. ansi flange

 

In the future, Hyundai Heavy Industries plans to focus on technological solutions research and development to meet more stringent environmental regulations, such as ballast water management conventions and sulfur emission limits that will take effect in 2020. welding neck flange

 

Jaehyung Choi, a shipbuilding analyst at Nomura Securities, pointed out that Hyundai Heavy Industries expects ship prices to rebound from the second quarter of this year; before the summer, Hyundai Heavy Industries is expected to obtain orders for more than 20 LNG ships as well as orders for container ships and marine equipment. He believes that Hyundai Heavy Industries is expected to begin its quarterly earnings recovery from the second quarter, and be able to complete the annual target of 13.2 billion US dollars.

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