Samsung Heavy Industries (010140) Investor presentation summary

Business performance and financials

• Revenue in 2Q 2024 reached KRW 2.5T, up 30% YoY and 8% QoQ, with operating profit at KRW 131B and a margin of 5.2%.

• Full-year 2024 revenue is projected at KRW 9.7T (17% YoY growth), with earnings of KRW 400B and a new order target of $9.7B, of which $5.4B was secured by September.

• Order backlog as of September 2024 stands at $31.9B, with LNG carriers making up 63% of the backlog.

• Total assets at end-June 2024 were KRW 16.8T, with total equity at KRW 3.9T and borrowings at KRW 3.6T.

• Market share leadership in LNG carriers, FSRUs, and drillships, with significant positions in containerships and tankers.

Market outlook

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

• Containership orders are shifting toward eco-friendly replacements, with new orders expected to slow after large deliveries in 2023–2024.

• 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 in progress or expected soon.

• Ammonia and LPG carrier demand is rising due to energy transition and policy support in key markets.

Eco-friendly technologies and innovation

• Strengthening international regulations (IMO) are accelerating orders for eco-friendly ships, targeting net-zero GHG emissions by 2050.

• Advanced LNG technology enables dual-fuel vessels to cut CO2 emissions by 30% versus conventional oil, with strong R&D and pilot testing capabilities.

• Decarbonization initiatives include waste heat recovery, CO2 capture, optimized ship shapes, and commercialization of liquid CO2 carriers.

• Future technologies focus on methanol- and ammonia-fueled vessels, fuel cell ships, and floating nuclear power plants, with several partnerships and pilot projects underway.

• Smart ship and autonomous ship systems are being developed for operational efficiency, safety, and reduced emissions, with successful demonstrations of remote and autonomous navigation.