South Korean shipbuilder Daewoo Shipbuilding and Marine Engineering (DSME) ended the third quarter of this year with a profit of KRW 45.7 billion (USD 41 million), compared to a net loss of KRW 284 billion posted a year earlier.
As explained, the restructuring measures, including asset sales and workforce reduction, as well as increased delivery of offshore facilities contributed to the quarterly financial performance.
Operating profit for the quarter stood at KRW 207 billion, against an operating loss of KRW 187 billion seen in Q3 last year.
Sales decreased to KRW 2.42 trillion in Q3 2017 from KRW 3.02 trillion reported in the corresponding three-month period of 2016.
“As all five offshore plants are scheduled to be delivered or depart (DSME facilities) this year, stable earnings will be possible in the future,” the company said.
Unveiled in March this year, the restructuring plan sets out three key principles – debt restructuring, financial assistance and bearing the burden of losses by all stakeholders.
“We will thoroughly implement the plan … including the sale of additional subsidiaries along with improved earnings,” a DSME official said, adding that the company will accelerate ship and offshore plant orders.
This is the third profitable consecutive quarter for the company. DSME’s net profit was KRW 1.25 trillion in Q2 and KRW 291.8 billion in Q1.
During the first nine months of this year, DSME recorded a profit of KRW 1.53 trillion, compared to a loss of KRW 1.24 trillion posted in the same period last year.