Samsung Heavy Industries (010140) Investor presentation summary

Business performance and financial status

• Revenue for Q3 2024 reached KRW 2.3T, up 15% YoY but down 8% QoQ, with operating profit at KRW 120B and a steady improvement in operating margin due to a higher proportion of profitable shipbuilding projects.

• Full-year 2024 revenue is projected at KRW 9.7T (21% YoY growth), with earnings outlook at KRW 400B and new order target of $9.7B, driven by LNG carriers and offshore projects.

• New orders from Jan–Oct 2024 totaled $6.0B, mainly from LNG carriers, with an order backlog of $32.2B as of October 31, 2024.

• Total assets at the end of September 2024 were KRW 15.1T, with total liabilities at KRW 11.3T and equity at KRW 3.7T.

Market outlook

• LNG carrier demand is expected to exceed 70 vessels per year, driven by rising LNG demand and replacement needs due to IMO regulations.

• Containership new orders are expected to slow due to recent large-scale deliveries, but eco-friendly replacement demand will continue, especially for vessels over 20 years old.

• Tanker market is improving, with 39% of the fleet over 15 years old and replacement demand rising due to environmental regulations.

• Offshore facility investment is set to expand, with FLNG projects expected to grow as global LNG exports increase.

Eco-friendly technologies and innovation

• International regulations are pushing for net-zero GHG emissions by 2050, increasing demand for eco-friendly ships and technologies.

• Decarbonization strategies include LNG dual-fuel vessels, waste heat recovery, CO2 capture, and optimized ship shapes for improved efficiency.

• Future technologies focus on methanol and ammonia-fueled vessels, fuel cell ships, floating nuclear power plants, and smart autonomous ships.

• Smart ship systems and autonomous navigation are being advanced, with successful demonstrations of remote and autonomous operations.