South Korean shipbuilder Hanwha Ocean reported consolidated revenue of KRW3.02 trillion ($2.2 billion) for the third quarter of 2025. This represents an eight per cent decrease compared to the previous quarter, primarily due to seasonal factors reducing working days, but marks a twelve per cent increase compared to the third quarter of 2024.
Operating profit for Q3 was KRW289.8 billion, down 22 per cent sequentially but up significantly from KRW25.6 billion in Q3 2024. Net profit for the quarter was KRW269.4 billion.
For the first nine months of 2025, Hanwha Ocean's revenue reached KRW9.46 trillion, a 26 per cent increase year-on-year. Operating profit for the nine-month period surged to KRW920.1 billion, a dramatic rise compared to the same period in 2024. Net profit for the first three quarters of 2025 stood at KRW633.6 billion.
Segment performance in the third quarter showed mixed results. The commercial vessel division saw revenue decrease 12 per cent sequentially to KRW2.46 trillion due to fewer working days, though its operating profit margin remained healthy at 12.5 per cent, which the company attributed to a favourable product mix centred on LNG carriers.
The naval ship division reported strong growth, with revenue up 58 per cent sequentially to KRW375 billion and operating profit rising 57 per cent to KRW28.7 billion, driven by progress on the Jangbogo-III Batch-II submarine program.
The offshore division experienced a sharp decline as projects neared completion, with revenue falling 64 per cent sequentially to KRW102.4 billion and recording an operating loss of KRW48.1 billion, partly due to one-off costs related to an FPSO incident.
The company's financial position showed total assets of KRW18.53 trillion and total liabilities of KRW13.06 trillion as of September 30, 2025. The debt ratio improved slightly to 238 per cent.
Net debt increased by 19 per cent during the quarter to KRW4.73 trillion. Hanwha Ocean's total order backlog stood at $31.67 billion at the end of the quarter.
Looking ahead to the fourth quarter, the company expects the revenue share from LNG carriers to continue increasing, driving profit expansion in the commercial segment.
The naval segment anticipates stable revenue and profit margins, while the offshore segment is expected to post a slight revenue decrease but a return to profitability due to change order settlements.