Samsung Heavys Results Better than Expected

zoom Korea-listed shipbuilding major Samsung Heavy Industries (SHI) reported a net profit of KRW 51 billion (USD 45 million) for the third quarter of 2015. According to Bloomberg, Samsung Heavys net income more than doubled analysts’ estimates. As reported, SHIs profit was also attributed to a payment from an undisclosed client who requested changes in an offshore project in Australia. Namely, analysts expected SHIs net profit to average at KRW 22.2 billion. Even though SHI remained in black, the results show a major drop in earnings, namely of 70.7 percent, when compared to last years figures, when the companys net profit was KRW 172.4 billion. The overall industry downturn and delays in construction of vessels for the offshore industry have been identified as the main factors that pushed the earnings down. Samsung Heavys operating income also took a blow with 53.4 percent fall to KRW 84.6 billion from 181.5 billion reported in the corresponding period in 2014.Nevertheless, these figures are again above the expected operating profit of KRW 13.6 billion. The shipbuilders sales fell by 25.3 percent year-on-year amounting to KRW 2.44 trillion from last years KRW 3.2 trillion, based on the companys stock exchange filing. World Maritime News Staff