Daewoo Ship posts first operating profit in 17 quarters
The world’s two biggest shipbuilders reported profit and issued an improved outlook, indicating South Korea’s shipyards may finally be emerging from two years of restructuring. Daewoo Shipbuilding & Marine Engineering Co., which averted a payment crisis this month after bondholders agreed to a debt revamp, said Thursday it is set to deliver more than 30 liquefied natural gas carriers through next year, helping improve earnings. Hyundai Heavy Industries Co. got $1.42 billion of orders in the first four months of this year and expects more in the coming months, the company said in a statement Thursday.
“We are getting double the number of inquiries for orders this year,” Hyundai Heavy said. “We have also been able to get higher ship prices.” Its affiliate Hyundai Mipo Dockyard Co. said it won $910 million in contracts.
Hyundai Heavy reported first-quarter operating profit jumped 90 percent on year to 618.7 billion won ($545 million), beating analyst estimates for 353.2 billion won. Daewoo Shipbuilding’s operating profit was 291.8 billion won, the first in 17 quarters, versus a loss of 38.1 billion won a year ago.
Another big positive for Peake. I really think Peake is a done deal. Just wished it was signed off before this NK problem grew more legs. I'll leave that alone form here on - said more then enough on that one!
TNG Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
