Samsung Heavy Industries (010140) Investor presentation summary

Business performance and financials

• Q2 2025 revenue reached KRW 2.7T, up 7% QoQ, with operating profit at KRW 205B and margin at 7.6% due to increased working days and improved product mix.

• Pretax income rose to KRW 215B, aided by recovery of Russia-related FX losses despite provisions for project cancellations.

• 1H 2025 revenue and operating profit achieved 49% and 52% of annual targets, respectively, with new orders at 51% of the yearly goal.

• Order backlog stands at US $27.0B, with 123 vessels and offshore facilities, and revenue backlog at KRW 25.7T as of September 2025.

• Debt ratio improved to 286% by June 2025, with total assets at KRW 13.9T and cash & equivalents at KRW 667B.

Market outlook

• LNG carrier orders are expected to rebound in 2H 2025 as FID approvals progress, with long-term growth in LNG and ethane maritime transport volumes.

• Eco-friendly replacement demand for containerships is rising due to IMO carbon tax and USTR port fees on Chinese-built vessels, favoring Korean-built ships.

• Tanker replacement demand remains strong, with over 43% of fleets older than 15 years and environmental regulations accelerating scrapping.

• Offshore FLNG projects are expanding, with multiple large-scale projects under negotiation and a strong track record in the sector.

Eco-friendly technologies and innovation

• Regulatory tightening by IMO is driving demand for green ships, with new and existing vessels subject to stricter efficiency and carbon intensity standards.

• Decarbonization strategies include advanced LNG technology, waste heat recovery, CO2 capture, optimized ship shapes, and energy-saving devices.

• Focus on alternative fuels, especially ammonia and nuclear power, with pilot test facilities and collaborations for ammonia-fueled and nuclear-powered vessels.

• Smart ship systems and autonomous vessels are being developed, with successful demonstrations and ongoing research for remote and autonomous operations.