Daewoo Shipbuilding & Marine Engineering Co., a major South Korean shipbuilder, said Wednesday that its first-quarter net profit fell 13.7 percent from a year earlier as sales declined.
Net profit reached 195 billion won (US$164 million) in the January-March period, compared with 226 billion won in the same quarter of last year, Daewoo Shipbuilding said in a regulatory filing.
Operating profit slipped 33.2 percent on-year to 199 billion won, while sales declined 8.2 percent on-year to 2.07 trillion won, according to the company.
Despite a decline in profits, the company said it had a solid first-quarter performance amid difficult market conditions in the shipbuilding sector.
“Last year, we had some one-off gains, so compared to the previous year, our first quarter earnings might not be good,” the company’s spokesperson said. “But we have been staying in the black for fifth consecutive quarters.”
Daewoo Shipbuilding said increased raw-material costs are still a challenge, but its recent deliveries of drillships, and order backlog for LNG vessels, will boost the company’s earnings.