Samsung Heavy Industries (010140) Investor presentation summary

Business performance and financial highlights

• Revenue in Q2 2024 reached KRW 2.5T, up 30% YoY and 8% QoQ, with operating profit at KRW 131B, including a KRW 25B one-off gain from offshore projects.

• 2024 revenue is projected at KRW 9.7T (17% YoY growth), with earnings of KRW 400B and a new order target of $9.7B, half of which was achieved by July.

• Order backlog as of July 2024 stands at $32.9B, with LNG carriers making up 62% of the backlog.

• Total assets at end-June 2024 were KRW 16.8T, with total equity at KRW 3.9T and cash & equivalents at KRW 4.9T.

Market outlook

• LNG carrier demand is expected to rise, with over 70 LNG and 40 VLGC/VLAC orders annually, driven by global LNG demand and replacement needs.

• Containership orders are shifting toward eco-friendly replacements, with new orders expected to slow due to recent large deliveries.

• Tanker market is buoyed by replacement demand, as 37% of the fleet is over 15 years old and environmental regulations tighten.

• Offshore facility investment is set to expand, especially in FLNG projects, with several major contracts and discussions ongoing.

Eco-friendly technologies and innovation

• International regulations are driving demand for eco-friendly ships, with IMO targeting net-zero GHG emissions by 2050.

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

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

• Smart ship systems enable remote operation, predictive maintenance, and reduced CO2 emissions using digital twin and AI technologies.