Daewoo profits up

Daewoo Shipbuilding Marine Engineering (DSME), the world’s No.2 shipbuilder, announced that its second-quarter profit rose 12% as gains in sales of newbuildings were bolstered by currency hedges. Net income rose to $78 million in the three months up to June 30 from $70.1 million last year while sales rose 4.1% to $990 million in the three months.

South Korea’s currency traded at an average of 1,167.67 won per $ in the second quarter compared with an average of 1,209.47 won last year. By hedging its dollar-denominated contracts at a weaker level, the company made a one-time currency gain. “DSME?s profit is better than what the market had expected,” said Kim Tae Sun, a manager at Woori Investment Trust Management. A Thomson Financial poll of 13 analysts was expecting net income to slump to $55.3 million in the second quarter.

DSME secured orders for 37 ships valued at $3.7 billion this year, exceeding its annual target of $3.3 billion. Of that total, it received contracts for 13 LNG carriers.