Despite a Larger-than-expected Order Inflow
Samsung Heavy Industries' order intake in 2021 exceeded its guidance, but the company's performance fell short of market expectations.
The company announced on Jan. 27 that it recorded annual sales of 6,622.0 billion won and operating loss of 1,312.0 billion won in 2021. Its annual sales were about 4 percent short of the market consensus, while its operating loss was about 73 percent larger than expected. Its order intake amounted to US$12.2 billion, 34 percent more than its gudance.
In the fourth quarter of 2021, it posted 1,846.5 billion won in sales and 257.1 billion won in operating loss. Its sales climbed from the previous quarter due to the expansion of the number of working days, but its operating loss rose.
Samsung Heavy Industries attributed the increase in operating loss to an advanced reflection of the possible slowdown in material price decline, valuation loss of drill ship inventory assets, and payment of bonuses. Excluding one-off factors, its current operating loss stood at around 72 billion won.