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Hanwha Ocean's Q4 net down 7% on bonus payments, annual net more than doubles

Published: 04 Feb. 2026, 17:55 Updated: 04 Feb. 2026, 18:14

Vessels are docked at Hanwha Ocean's shipyard in Geoje, South Gyeongsang, on Nov. 27, 2025. [YONHAP]

Hanwha Ocean said Wednesday its fourth quarter net profit declined 7 percent from a year earlier due to one-off costs, even as the company recorded an expanded net profit for the full year of 2025.

Hanwha Ocean's net profit for the October-December period totaled 539.1 billion won ($371.7 million), down from 579.5 billion a year earlier, the company said in a regulatory filing.

Operating profit rose 11.8 percent on year to 189 billion won, while sales edged down 0.8 percent to 3.22 trillion won.

The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 285.3 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

The company said the quarterly profit decline was mainly due to one-off costs, including performance bonuses paid at the same rate to directly employed workers and partner-company employees, as well as other labor-related expenses.

For the entirety of 2025, Hanwha Ocean's net profit totaled 1.17 trillion won, up 122 percent on year. Operating profit reached 1.11 trillion won, jumping 366 percent from a year ago.

It marked the first time the shipbuilder has posted an annual operating profit of more than 1 trillion won since 2018.

Hanwha Ocean attributed the sharp improvement in operating profit to a shift toward profitability-focused orders, productivity gains and continued cost-cutting efforts.

The company said it expects favorable market conditions to continue this year, citing a sustained high-price environment for liquefied natural gas carriers.

For its bid for the Canadian Patrol Submarine Project, Hanwha Ocean said during an earnings call that it has proposed a plan to deliver four submarines by 2035, citing Canada's emphasis on rapid delivery. The company has been shortlisted for the project alongside Germany's Thyssenkrupp Marine Systems.

The Canadian project is a major defense program aimed at introducing up to 12 submarines in the 3,000-ton class, with an estimated value of 60 trillion won. The project also includes lifetime maintenance and support.

Hanwha Ocean said it is working closely with the Korean government to achieve the best possible outcome, as part of efforts to meet the Canadian government's offset requirements for selecting the winner of the submarine program.

Offset requirements refer to policies under which sellers are expected to provide industrial benefits, such as technology transfers, to the purchasing country as part of a defense contract.

Yonhap