As the construction of high-value-added ships enters its peak period, the performance of South Korea’s three major shipbuilders—HD Korea Shipbuilding & Offshore Engineering, Hanwha Ocean, and Samsung Heavy Industries—is also accelerating its improvement. According to forecasts from the Korean financial information company F&Guide, the combined operating profit of the three major shipbuilders in the third quarter of this year is expected to reach 1.5 trillion won (approximately 7.5 billion RMB), a year-on-year increase of 276%.
In the third quarter of last year, the three major shipbuilders achieved a total operating profit of 543.9 billion won (approximately 2.875 billion RMB). Among them, HD Korea Shipbuilding & Offshore Engineering achieved an operating profit of 398.4 billion won (approximately 2.1 billion RMB), a year-on-year increase of 477.4%; Samsung Heavy Industries achieved an operating profit of 119.9 billion won (approximately 635 million RMB), a year-on-year increase of 58%; Hanwha Ocean achieved an operating profit of 25.6 billion won (approximately 140 million RMB), a year-on-year decrease of 65.5%.
F&Guide’s forecast shows that in the third quarter of this year, HD Korea Shipbuilding & Offshore Engineering’s operating profit is 932.9 billion won (approximately 4.65 billion RMB), a year-on-year increase of 234%; Hanwha Ocean’s operating profit is 349.6 billion won (approximately 1.74 billion RMB), a year-on-year increase of 1366%; Samsung Heavy Industries’ operating profit is 217.5 billion won (approximately 1.09 billion RMB), a year-on-year increase of 181%.
In the first quarter of this year, HD Korea Shipbuilding & Offshore Engineering achieved an operating profit of 859.2 billion won (approximately 4.36 billion RMB), a year-on-year increase of 436.3%; Samsung Heavy Industries achieved an operating profit of 123.1 billion won (approximately 625 million RMB), a year-on-year increase of 58%; Hanwha Ocean achieved an operating profit of 258.6 billion won (approximately 1.3 billion RMB), a year-on-year surge of 488.8%.
In the second quarter of this year, HD Korea Shipbuilding & Offshore Engineering achieved an operating profit of 953.6 billion won (approximately 4.926 billion RMB), a year-on-year increase of 153.3%; Samsung Heavy Industries achieved an operating profit of 204.8 billion won (approximately 1.04 billion RMB), a year-on-year increase of 56.7%; Hanwha Ocean achieved an operating profit of 371.7 billion won (approximately 1.92 billion RMB), a significant turnaround from a loss of 9.7 billion won in the same period last year.
F&Guide analysis believes that despite a significant decrease in global new ship orders this year, the substantial increase in operating profit for the three major shipbuilders is mainly due to the high-value-added orders they previously secured entering the peak construction period this year. Against the backdrop of continuously strengthening international maritime environmental regulations, Korean shipbuilders have adhered to a selective order-taking strategy, focusing on high-value-added orders centered on eco-friendly ships such as large container ships and LNG carriers, achieving good results. So far this year, all 18 LNG carriers contracted globally have been taken by the three major Korean shipbuilders, with HD Korea Shipbuilding & Offshore Engineering securing 5, Hanwha Ocean securing 6, and Samsung Heavy Industries securing 7.
However, as the International Maritime Organization’s (IMO) push for the Net-Zero Framework (NZF) failed to be adopted at the International Marine Environment Protection Committee (MEPC) meeting in October 2025, the future performance prospects for Korean shipbuilders have become uncertain. The obstruction of NZF was mainly influenced by strong opposition from countries including the United States. The United States has publicly stated that it may take retaliatory measures against countries supporting the relevant regulations. This framework was originally planned to limit greenhouse gas emissions in the shipping industry through a legally binding mechanism, but due to significant differences among parties, the vote resulted in a delay of 12 months with 57 votes in favor and 49 against. The framework was originally scheduled to take effect in 2027; if its adoption is delayed, it will hinder the decarbonization process of the shipping industry.
Previously, the Korean industry generally believed that with changes in environmental policies, the three major Korean shipbuilders would continue to benefit. However, the delay in the adoption of NZF may lead to a decline in the performance of the three major shipbuilders in the fourth quarter of this year or next year.
A representative from the Korean shipbuilding industry stated: “Currently, the necessity for shipowners to order eco-friendly ships has indeed decreased. The LNG carrier market may see a trend where shipowners continue to wait and see.”
It is reported that Samsung Heavy Industries will officially hold its earnings release on October 23, Hanwha Ocean will hold its earnings release on October 27, and HD Korea Shipbuilding & Offshore Engineering will hold its earnings release on November 3. Prior to this, the three shipbuilding subsidiaries of HD Hyundai Group—HD Hyundai Heavy Industries, HD Hyundai Mipo, and HD Hyundai Samho—will release their third-quarter results.
