Samsung Heavy Industries (010140) Investor presentation summary

Financial performance and business status

• Revenue in 2024 reached KRW 9.9T, up 24% YoY, with operating profit at KRW 503B, a 115% increase YoY.

• Net income turned positive at KRW 54B, reversing a previous loss.

• Q4 2024 revenue was KRW 2.7T, up 16% QoQ, with operating profit at KRW 174B.

• Order backlog at year-end 2024 was US$31.4B, with LNG carriers comprising 61% of the backlog.

• New orders in 2024 totaled US$7.3B (36 vessels), with a 2025 new order target of US$9.8B.

Market outlook

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

• Containership orders will focus on eco-friendly replacements, with limited new orders due to recent large deliveries.

• Tanker market outlook is positive, with replacement demand driven by aging fleets and stricter environmental regulations.

• Offshore facility investments, especially FLNG projects, are set to expand due to energy security concerns.

Eco-friendly technologies and decarbonization

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

• Advanced LNG dual-fuel technology reduces CO2 emissions by 30% compared to conventional fuels.

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

• Methanol and ammonia-fueled vessels, as well as floating nuclear power plants, are under development.

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