Daewoo expects more revenue but less profit

Daewoo Shipbuilding in Korea announced that next year it aims to earn W 4.3 trillion in revenue, W 300 billion in operating profit and W 250 billion in net profit.

These figures are based on a currency exchange rate of W 1,130 per US dollar next year. The currency exchange rate this year is W 1,190 per dollar on average and the expected appreciation of the Korean currency will partly affect profits next year. The shipbuilder added that prices of ships to be built next year were relatively low because they were ordered in 2002 when prices were at their lowest as a result of 11 September impact.

In the first ten months this year, the shipbuilder has achieved W 3.5 trillion in revenue, W 335.5 billion in operating profit and W 298 billion in net profit. During the first 11 months this year, the Okpo-based shipbuilder has clinched orders worth $3 billion for commercial ships and $1.3 billion for offshore structures. By ship types, gas carriers, i.e. LNG and LPG, will take 47% of the total value of new orders, container ships 15%, tankers 13%, others 8% and offshore 17%.

Daewoo Shipbuilding also said that, for next year, it has set a target for new orders at

$4.28 billion representing $3.58 billion for commercial ships and $700 million for offshore structures.