South Korean shipbuilding conglomerate Hyundai Heavy Industries Co. swung to a net loss in the first quarter of this year amid decreased work volume across all segments.
The net loss for the first three months of 2018 came at KRW 132 billion (USD 123 million), against last year’s KRW 114 billion profit.
Sales fell by 29.4 pct year-on-year reaching KRW 3.042 billion.
The result was largely impacted by impairment losses from the shutdown of Gunsan dockyard, Green Energy business as well as costs from canceled vessels that hit KRW 9.7 billion and a foreign exchange loss of KRW 55.6 billion.
HHI Group’s orderbook stood at USD 2.7 billion at the end of March 2018, which is substantially down from the targeted USD 13.2 billion.
Hyundai ascribed the ordering trend to vessel price increase, not the lack of interest in ordering.
The shipbuilder said that the recovery of the shipbuilding market since the 2016’s downturn was speeding up, with the market outlook continuously being reversed upward.
“We are expecting to see more new orders with improved vessel prices,” the shipbuilder said.
As informed, Hyundai Mipo Dockyard’s recently secured order for MR product tankers fetched a price of USD 42 million per vessel.
Moving forward, HHI Group plans to focus its research and development activities on technological solutions aimed at meeting the stricter environmental regulations such as the Ballast Water Management Convention and 2020 Sulphur Cap.
The results are being announced on the back of the company’s contract with Zodiac Group Monaco for four containerships.
The shipbuilding major said the contract was worth KRW 436.8 billion (USD 407 million). The four container carriers are scheduled for delivery by July 2020.
World Maritime News Staff