Daewoo Shipbuilding & Marine Engineering Co., a leading South Korean shipbuilder, said Monday that it shifted to an operating profit of 733 billion won (US$688 million) in 2017 from a loss of 1.53 trillion won a year earlier.
The figures mark the first time that the shipbuilder has achieved a yearly operating profit since 2011.
The company’s net profit came to 669.9 billion won in 2017, an improvement from a net loss of 2.78 trillion won in 2016, Daewoo Shipbuilding said in a regulatory filing.
The turnaround is attributed to the massive restructuring plan that the shipbuilder has undertaken since 2015 to cut costs and put in place an efficient production system.
The shipbuilder also said it will carry out a further restructuring plan worth 1.3 trillion won this year.
Since the 2008 financial crisis, South Korean and other shipbuilders have struggled with an oversupply of vessels and declining orders.
Nevertheless, sales fell 13.4 percent on-year to 11.1 trillion in 2017, the company said.
Daewoo Shipbuilding said it aims to achieve 9.96 trillion won in sales and receive orders worth US$7.3 billion this year.