​​Hyundai shipyard posts first quarter net loss

By Park Sae-jin Posted : May 3, 2018, 17:58 Updated : May 3, 2018, 17:58

[Hyundai Heavy]



SEOUL -- Hyundai Heavy Industries, the world's top shipbuilder, turned into the red in the first quarter of this year due to unfavorable business conditions such as the lack of work and foreign exchange losses.

In its first-quarter earnings report on Thursday, the shipyard posted a net loss of 132 billion won (122 million US dollars), compared with a net profit of 114.1 billion won a year earlier.

In the same period, a strong won, fixed costs and dwindling orders caused an operating loss of 123.8 billion won, shifting from a net profit of 141.5 billion won a year earlier. Sales fell 29.4 percent on-year to 3.4 trillion won.

Hyundai Heavy officials cited fierce competition among global shipbuilders but they promised to maintain the shipyard's competitive edge by stepping up efforts to reduce costs and focus on value-added ships such as liquefied natural gas carriers. The shipbuilder predicted a substantial increase in the price of ships this year.

On Thursday, Hyundai Heavy said it won an order to build four large container carriers worth 436.8 billion won for Europe's Zodiac Group Monaco by July 2020.

Hyundai Heavy and other domestic shipyards have been put under painful restructuring to reduce their debt. South Korea's creditor-controlled shipping company Hyundai Merchant Marine started sending out orders in April to domestic shipyards for 20 giant container ships.

 
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