Samsung Heavy Industries (010140) Investor presentation summary

Business performance and financial status

• Q1 2024 revenue reached KRW 2.3T, up 46% YoY, with operating profit at KRW 78B, maintaining a steady surplus.

• 2024 revenue is projected at KRW 9.7T, with earnings of KRW 400B and a new order target of $9.7B.

• New orders from Jan-May 2024 totaled $3.8B, mainly LNG carriers, with a backlog of $33.0B, the highest since 2015.

• Total assets at end of Q1 2024 were KRW 16.4T, with total equity at KRW 3.7T and borrowings of KRW 3.6T.

Market outlook

• LNG carrier demand is expected to exceed 70 new orders per year, driven by rising LNG transport and replacement needs.

• Containership new orders are set to decrease, but eco-friendly replacements will continue due to aging fleets and regulations.

• Tanker market is improving as over 35% of fleets are over 15 years old, prompting replacement demand.

• Offshore facility investment is expected to expand, especially in FLNG projects, with several major contracts in progress.

Eco-friendly technologies and innovation

• Strengthening IMO regulations are driving demand for eco-friendly ships and decarbonization technologies.

• Advanced LNG technology enables dual-fuel vessels to cut CO2 emissions by 30% compared to conventional oil.

• Waste heat recovery, CO2 capture, and optimized ship shapes are being developed to further reduce emissions and improve efficiency.

• Methanol and ammonia-fueled vessels, fuel cell ships, and floating nuclear power plants are under development for future sustainability.

• Smart ship and autonomous ship systems are advancing, enabling remote operation, predictive maintenance, and reduced OPEX.