Hanwha Ocean Reports Q1 2026 Operating Profit of KRW 441bn, Order Backlog at KRW 35.4tn

Q1 2026 consolidated revenue of KRW 3.21tn, operating profit of KRW 441bn, net profit of KRW 500bn (operating margin 13.7%)
Consolidated order backlog of KRW 35.37tn (commercial vessels KRW 26.2tn, EP & special ships KRW 9.1tn) – securing stable earnings base
Commercial vessel segment accounts for 87% of revenue, selective order-taking strategy focusing on high-value ships (LNGC, etc.) continues
Total assets KRW 20.8tn, debt ratio 205% (standalone 210%), cash equivalents KRW 1.06tn (up from KRW 0.78tn at year-end 2025)
2026 facility investment plan KRW 861.9bn (KRW 73.7bn executed in Q1) – aimed at enhancing production capacity
Expanding presence in Americas including acquisition of stake in Philly Shipyard (Philadelphia)
Hybrid securities of KRW 2.33tn classified as equity; debt ratio rises to 363% if convertible bonds included – need for capital structure improvement
Major litigation risks (shareholder/bondholder lawsuits related to accounting fraud, SIAC arbitration, Russia sanction impacts)
Currency option (TRF) valuation loss of KRW 4.9bn; hedging policy in place
Shareholder return: Secured distributable profits, reviewing mid-to-long term dividend policy (shareholder meeting approved treasury share disposal plan)