Recently, South Korea’s mid-sized shipbuilder DH Shipbuilding (formerly Daehan Shipbuilding) released its performance report for the third quarter of this year. It achieved revenue of 274 billion KRW (approximately 193 million USD, 1.4 billion RMB) and an operating profit of 66.5 billion KRW (approximately 46.8 million USD, 330 million RMB). The operating profit margin climbed to 24.3%, an increase of 3.2 percentage points compared to the second quarter. This marks the third consecutive quarter the company has maintained an operating profit margin above 20%, ranking first among South Korean shipbuilders and demonstrating stable profitability.
For the first three quarters of this year, DH Shipbuilding accumulated revenue of 877.7 billion KRW (approximately 620 million USD, 4.46 billion RMB), a year-on-year increase of 18%. It achieved an operating profit of 198.8 billion KRW (140 million USD, 1.01 billion RMB), a year-on-year increase of 125%. The operating profit margin was 22.6%, which is 7.9 percentage points higher than the full-year figure for last year.
In 2024, DH Shipbuilding achieved annual revenue of 1074.6 billion KRW (approximately 792 million USD, 5.656 billion RMB), a year-on-year increase of 32%. It achieved an operating profit of 158.2 billion KRW (approximately 117 million USD, 830 million RMB), a year-on-year increase of 340%. This growth rate ranked second among large and mid-sized South Korean shipbuilders, only behind HD Korea Shipbuilding & Offshore Engineering. The operating profit margin reached 14.7%, an increase of over 10 percentage points compared to the approximately 4.4% in 2023, making it top-tier among South Korean shipbuilders and showcasing strong growth momentum.
Since the beginning of this year, DH Shipbuilding has continued its positive trend of rapidly improving earnings. In the first quarter, DH Shipbuilding achieved revenue of 307.7 billion KRW (approximately 219 million USD, 1.57 billion RMB) and an operating profit of 69.7 billion KRW (approximately 49.5 million USD, 355 million RMB), with an operating profit margin of about 22.7%. In the second quarter, it achieved revenue of 296 billion KRW (approximately 210 million USD, 1.53 billion RMB), a year-on-year increase of 16.7%. It achieved an operating profit of 62.5 billion KRW (approximately 45.11 million USD, 320 million RMB), a year-on-year increase of 84.4%. The operating profit margin was 21.1%, slightly down by 1.6 percentage points, but still remained above 20%.
In the third quarter, DH Shipbuilding further improved its profitability by establishing an order portfolio and serial construction system centered on high-value-added ship types such as shuttle tankers and container ships, and by increasing the proportion of in-house block manufacturing to enhance production efficiency. Additionally, the company stabilized its high-profit structure through measures such as improving equipment utilization rates and strengthening cost management.
In February of last year, DH Shipbuilding secured an order for three 154,000 dwt shuttle tankers from a shipowner in the Oceania region, with a total contract value of approximately 400 million USD. The price was at least 50% higher than that of conventional tankers, setting a record for the highest single newbuilding order value received by DH Shipbuilding since its establishment in 2007. These new vessels entered the construction phase in the second half of this year, laying a solid foundation for improved earnings.
Furthermore, in September of this year, DH Shipbuilding secured a total of eight Suezmax tanker orders, with a total contract value of approximately 600 million USD (about 4.25 billion RMB), accounting for 80% of the global volume for this ship type, proving its competitiveness in the global mid-sized shipbuilding market. Subsequently, on October 14, DH Shipbuilding secured an order for two 8800 TEU container ships from Japanese shipowner Doun Kisen, with a total contract value of 330 billion KRW (approximately 231 million USD, 1.648 billion RMB). Within about three weeks, the total value of the 10 new vessel orders consecutively received reached approximately 828 million USD (about 5.9 billion RMB), further consolidating its position in the global mid-sized ship market.
Through this series of order acquisitions, DH Shipbuilding has currently secured a stable order backlog covering approximately 3 years, with the value of its order backlog standing at about 3 billion USD. In the first half of this year, DH Shipbuilding maintained a conservative management policy regarding strategic order-taking, but starting in the second half of the year, it began more active order-taking activities in response to market changes.
A representative from DH Shipbuilding stated: “The company has maintained an operating profit margin of around 20% for four consecutive quarters, establishing a stable profit structure. In the fourth quarter, the company’s performance is expected to remain strong, and the full-year performance is anticipated to reach a record high.”
