Korea Shipbuilding & Offshore Engineering Co Ltd
KRX:009540
Korea Shipbuilding & Offshore Engineering Co Ltd
Korea Shipbuilding & Offshore Engineering Co Ltd., often viewed as a cornerstone in the global maritime industry, crafts a legacy of innovation and resilience in shipbuilding. Emerging as a corporate entity from the restructuring of Hyundai Heavy Industries, this company is positioned at the forefront of constructing a diverse range of high-value vessels. Expertly navigating the complexities of maritime demands, they specialize in the design and production of ships tailored for shipping goods, energy transportation, and offshore drilling operations. The meticulous engineering processes and technology-driven manufacturing capacities they employ ensure that their vessels are robust, efficient, and environmentally compliant, addressing the pressing needs of international shipping and energy sectors.
In its pursuit of profitability, Korea Shipbuilding & Offshore Engineering capitalizes on its strategic direction in both traditional shipbuilding and increasingly crucial sectors such as liquefied natural gas (LNG) carriers and eco-friendly vessels. By leveraging its extensive production capabilities and cutting-edge technology, the company secures contracts from global shipping and energy firms who seek reliability and innovation. While it crafts massive cargo ships and sophisticated offshore platforms, it also extends its expertise into after-service operations, a profitable segment that includes maintenance and modernization of its fleet. Through these multifaceted revenue streams, the company maintains its position as a dynamic leader in the maritime industry, while continuously charting courses for future growth and sustainability.
Korea Shipbuilding & Offshore Engineering Co Ltd., often viewed as a cornerstone in the global maritime industry, crafts a legacy of innovation and resilience in shipbuilding. Emerging as a corporate entity from the restructuring of Hyundai Heavy Industries, this company is positioned at the forefront of constructing a diverse range of high-value vessels. Expertly navigating the complexities of maritime demands, they specialize in the design and production of ships tailored for shipping goods, energy transportation, and offshore drilling operations. The meticulous engineering processes and technology-driven manufacturing capacities they employ ensure that their vessels are robust, efficient, and environmentally compliant, addressing the pressing needs of international shipping and energy sectors.
In its pursuit of profitability, Korea Shipbuilding & Offshore Engineering capitalizes on its strategic direction in both traditional shipbuilding and increasingly crucial sectors such as liquefied natural gas (LNG) carriers and eco-friendly vessels. By leveraging its extensive production capabilities and cutting-edge technology, the company secures contracts from global shipping and energy firms who seek reliability and innovation. While it crafts massive cargo ships and sophisticated offshore platforms, it also extends its expertise into after-service operations, a profitable segment that includes maintenance and modernization of its fleet. Through these multifaceted revenue streams, the company maintains its position as a dynamic leader in the maritime industry, while continuously charting courses for future growth and sustainability.
Profitability: KSOE’s Q4 operating profit margin was 13.7%, down slightly QoQ due to one-off bonus expenses, but would have been around 15% excluding bonuses.
Revenue Growth: Sales rose 7.5% QoQ and 13.8% YoY, supported by improved productivity, higher FX rates, and strong offshore division performance.
Order Performance: The group’s 2025 shipbuilding orders reached $17.417 billion, exceeding the annual target by 16%.
Division Results: Offshore plant revenue surged 97.5% QoQ and 17.5% YoY; Engine and Machinery saw a 24.1% QoQ revenue drop due to delivery deferrals.
Bonus Impact: Substantial incentive bonuses across divisions were a key one-off cost, with caps at 800% for HHI/KSOE and 1,000% for Samho.
Market Outlook: Management sees newbuild prices remaining high and expects gradual price increases in 2026 amid a resilient global order environment.
Financial Health: All shipbuilding subsidiaries are in a net cash position totaling KRW 6.2 trillion.
