Hanwha Ocean Co., Ltd. (042660)

Hanwha Ocean is a comprehensive shipbuilding and offshore specialist company engaged in merchant vessels, offshore plants, and special purpose ships/defense businesses. Its main products include merchant vessels such as LNG carriers, LPG carriers, Very Large Crude Carriers (VLCCs), and container ships; offshore plants such as Floating Production Storage and Offloading (FPSO) units, Floating LNG (FLNG) units, and Wind Turbine Installation Vessels (WTIVs); and special purpose ships such as submarines and surface combatants. Notably, it holds a global technological advantage in the LNG carrier sector. As of Q1 2026, revenue from the merchant vessel segment accounted for 82.9%, while the EP (Energy Plant) and special purpose ship segments accounted for 16.5%, with LNG carrier exports making up the majority of the merchant vessel segment. Hanwha Ocean holds a stable position in both domestic and international shipbuilding markets in the LNG carrier and special purpose ship sectors. Key clients include numerous merchant vessel customers such as Mitsui O.S.K Lines.Ltd, NORTH OIL COMPANY, and the Defense Acquisition Program Administration (DAPA). Hanwha Ocean possesses world-class technological competitiveness in the LNG carrier sector and is leading eco-friendly ship technology development, including the world's first carbon-free propulsion vessel 'Ocean 1' based on an ammonia gas turbine. Furthermore, it has established its proprietary smart ship platform 'HS4' and a digital twin-based smart yard, enhancing production efficiency and quality. In the defense sector, it has secured a leading position in unmanned maritime defense, including unmanned surface vessels and submersibles. It boasts unique technological capabilities, having built numerous major vessels for the Republic of Korea Navy and having designed and constructed the KSS-III 'Dosan Ahn Chang-ho' submarine with indigenous technology. Since its incorporation into Hanwha Group, it has been expanding integrated marine solutions and creating synergy through the group's capital strength and collaboration with affiliates such as Hanwha Engine and Hanwha Power Systems. Hanwha Ocean's revenue showed robust growth, increasing by 52.4% from KRW 4.8602 trillion in 2022 to KRW 7.4083 trillion in 2023, then by 45.5% to KRW 10.7760 trillion in 2024, and by 18.6% to KRW 12.7835 trillion in 2025. In terms of profitability, the company recorded an operating loss of KRW 1.6136 trillion in 2022 and KRW 196.5 billion in 2023, but successfully turned to profit with an operating income of KRW 237.9 billion in 2024. In 2025, operating income reached KRW 1.1676 trillion, marking a high growth rate of 390.8% year-over-year. Net income also significantly improved, turning to profit from KRW -1.7448 trillion in 2022 to KRW 160 billion in 2023, and further to KRW 1.2459 trillion in 2025. For Q1 2026, revenue was KRW 3.2099 trillion and operating income was KRW 441.1 billion, representing a 2.1% increase in revenue and a 70.6% increase in operating income year-over-year, continuing the trend of improving profitability. Hanwha Ocean's financial soundness significantly improved compared to 2022. The debt-to-equity ratio substantially decreased from 1542.43% in 2022 to 223.38% in 2023, then was 266.90% in 2024, and recorded 226.17% in 2025. The current ratio improved from 73.30% in 2022 to 123.57% in 2023, and has been maintained at 108.69% in 2024 and 107.87% in 2025. Return on Equity (ROE) turned profitable from a deficit of -234.21% in 2022 to 3.71% in 2023, 10.86% in 2024, and 20.18% in 2025, demonstrating a recovery in profitability and continuous improvement. Hanwha Ocean is focusing on developing high value-added vessels and eco-friendly/smart ship technologies, aligning with the industry trends of increasing global demand for eco-friendly ships and the transition to marine energy. Specifically, an increase in demand for LNG carriers due to changes in U.S. fossil fuel policy and a ripple effect benefit for Korean shipbuilders due to changes in international affairs are anticipated. Furthermore, it is strengthening synergies in its defense and offshore plant businesses and pursuing global market expansion, expecting to secure major special purpose ship projects such as the Canadian Submarine Project (CPSP) and the Korean Next-Generation Destroyer (KDDX). The company plans to proactively address U.S.-bound demand through the acquisition of Philly Shipyard and securing a stake in Austal, aiming to achieve KRW 30 trillion in revenue and KRW 5 trillion in operating income by 2040.