Seoul: Hanwha Ocean Co., the shipbuilding arm of South Korea's Hanwha Group, reported on Monday a remarkable increase in its second-quarter net profit, which more than quadrupled compared to the same period last year. The surge in profits was attributed to the production of higher-margin ships and a favorable exchange rate due to a weaker won.

According to Yonhap News Agency, Hanwha Ocean's net profit for the three months ending in June soared to 692.6 billion won (US$471.9 million) from 148.5 billion won a year earlier. The company emphasized that the orders for high-value ships significantly contributed to the financial results in the second quarter, alongside the advantageous currency exchange rates.

Despite its recent failure to secure a multibillion-dollar submarine procurement project with Canada, Hanwha Ocean noted that the associated costs were fully accounted for in its first-half financial results. The project, valued at up to 60 trillion won, was awarded to Germany's Thyssenkrupp Marine Systems, surpassing the bid from a South Korean consortium led by Hanwha Ocean and HD Hyundai Heavy Industries Co.

"The company perceives the unsuccessful bid as an important step in enhancing its presence in the global defense market," a Hanwha Ocean official revealed during a conference call discussing the quarterly earnings. The company is actively exploring business opportunities across the Middle East, Africa, Southeast Asia, Latin America, and Europe, leveraging the networks and expertise gained during the bidding process.

In terms of operating profit, Hanwha Ocean experienced a 98 percent increase, reaching 736.1 billion won in the second quarter compared to 371.7 billion won a year earlier. Sales also witnessed a significant rise of 65 percent, totaling 5.44 trillion won from the previous 3.29 trillion won.

For the first half of the year, the company's net profit more than tripled to 1.19 trillion won from 364.2 billion won in the previous year. Operating profit for the first half jumped 86.8 percent on-year to 1.17 trillion won, while sales climbed 34 percent to 8.65 trillion won from 6.43 trillion won.

During the first half, Hanwha Ocean secured 6.4 trillion won worth of orders for liquefied natural gas (LNG) carriers, very large crude carriers (VLCCs), and other high-value vessels. The company has also set an ambitious annual order target, reflecting its confidence in future growth prospects.