Fx hedges split Korea’s shipbuilding big three profitability

AI Summary

South Korea's three major shipbuilders—HD Hyundai Heavy Industries, Hanwha Ocean, and Samsung Heavy Industries—reported double-digit operating margins in Q2 due to the revenue impact of high-priced LNG carrier orders placed years ago. Foreign exchange hedges influenced profitability variances among the companies.

The three major shipbuilders (HD Hyundai Heavy Industries, Hanwha Ocean, Samsung Heavy Industries) all posted double-digit operating margins in the second quarter. Profitability is seen to have improved as high-priced ships, such as liquefied natural gas (LNG) carriers booked several years ago in the mainline merchant ship business, began to be fully reflected in revenue. ...