Samsung Heavy Industries (010140) Investor presentation summary

Business performance and financials

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

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

• Order backlog as of June 2024 stands at $33.7B, the highest since 2015, with significant LNGC and offshore project contributions.

• Total assets at end of Q1 2024 were KRW 16.4T, with cash and equivalents at KRW 881B and borrowings at KRW 3.6T.

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

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 due to prior large-scale deliveries, but eco-friendly replacement demand will grow.

• Tanker market is buoyed by replacement demand for older vessels, with 35% of the fleet over 15 years old.

• Offshore facility investment is rebounding, with FLNG projects expanding and several major contracts in progress.

Eco-friendly technologies and innovation

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

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

• Advanced technologies under development include methanol and ammonia-fueled vessels, fuel-cell ships, and floating nuclear power plants.

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