Daewoo Shipbuilding logs profit for 3rd straight quarter

Daewoo Shipbuilding & Marine Engineering Co., a troubled shipbuilder here, said Wednesday that it posted a profit for the third straight quarter from July through September, largely thanks to cost-cutting measures and increased delivery of offshore facilities.

Net profit reached 47.5 billion won (US$42.6 million) in the July-September period, a turnaround from a loss of 284 billion won a year earlier, the company said in a regulatory filing.

The improvement in the bottom line marks the third straight quarter that the shipyard remained in the black.

In the second quarter, it posted a net profit of 1.26 trillion won following a profit of 234 billion won in the first quarter.

The shipbuilder logged an operating income of 207 billion won in the third quarter, also shifting from an operating loss of 187 billion won a year earlier, with sales down 19.8 percent on-year to reach 2.42 trillion won.

In the first nine months of the year, Daewoo Shipbuilding racked up a net profit of 1.53 trillion won and an operating income of 1.09 trillion won and sales of 8.6 trillion won.

In March, its creditors, led by Korea Development Bank (KDB), announced a fresh rescue package worth 6.7 trillion won for the shipyard.

The shipbuilder is hard pressed to implement self-rescue measures worth 5.3 trillion won through 2018. It has already sold off noncore assets and cut its workforce, through which it has raised or saved 1.8 trillion won.

This year alone, it aims to conduct 2.77 trillion won in self-rescue schemes, with some 2.45 trillion won already implemented.
Source: Yonhao