South Korea’s Hanwha Ocean has reported a strong third quarter, posting ₩3.02 trillion ($2.2 billion) in revenue and ₩289.8 billion ($210 million) in operating profit for the July–September 2025 period, up 11.8% and 1,032% year-on-year, respectively.
The shipbuilder’s performance was primarily driven by a surge in deliveries of high-value liquefied natural gas (LNG) carriers, marking the materialization of orders placed during the industry’s post-2022 “super-cycle.” Under heavy-tail payment terms—where final payments are made upon vessel delivery—Hanwha Ocean’s profit margins expand sharply when completed vessels are handed over.
By segment, the commercial ship division sustained double-digit operating margins, supported by a continued focus on premium LNG carriers. The special ship division’s revenue jumped 58% from the previous quarter as naval production remained active and maintenance, repair, and overhaul (MRO) operations for the Republic of Korea Navy continued steadily.
A Hanwha Ocean spokesperson stated that LNG carriers are expected to account for roughly 60% of total sales in the near term, adding that “new project deliveries will help maintain a solid operating profit flow.”
However, the company faces potential headwinds from geopolitical risks. China reportedly imposed sanctions on one of Hanwha Ocean’s subsidiaries in mid-October amid escalating U.S.–China trade tensions. In response, Hanwha Ocean plans to improve profitability through its U.S. affiliate, Philadelphia Shipyard, which currently has an order backlog of about $3 billion. The company expects a turnaround in the U.S. operation by 2026 while working to mitigate the impact of Chinese measures through diversified contingency planning.
Source: Single-source verified – Chosun Ilbo (27 October 2025)
