Turning to Profit
Daewoo Shipbuilding & Marine Engineering announced on April 27 that it turned a profit for the first time in 17 quarters in the first quarter of this year, when its sales, operating profits and current net income totaled 2.7840 trillion won, 291.8 billion won and 261.3 billion won, respectively. The sales fell approximately 20.1% from a year earlier.
The shipbuilder explained that the profit turnaround can be attributed to change orders it secured with respect to maritime projects with uncertainties related to offshore plants already reflected last year. It also mentioned that it could increase its profits by means of budgetary compliance and productivity improvement for and punctual delivery of high value-added ships such as LNG carriers and large container ships and its enhanced cost competitiveness based on its continuous restructuring plan including asset disposal and manpower restructuring.
“Our production of LNG carriers, one of the most profitable types of ships, is scheduled to increase in the second and following quarters of this year and, as such, our profitability will continue to rise for the time being,” Daewoo Shipbuilding & Marine Engineering remarked, adding, “We are planning to deliver a total of more than 30 LNG carriers this year and next year.”
The shipbuilder recently avoided receivership. At present, restoration of its business is picking up speed based on debenture holders’ agreement on debt restructuring. The company is going to stick to its self-help plan while proceeding with its efforts for cost reduction and more efficient management.