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Samsung Heavy Industries Q3 profit plunges 71%

Samsung Heavy Industries Q3 profit plunges 71%
Samsung Heavy Industries (SHI) has recorded a fall in profit in the third quarter ended 30 September 2015, due mainly to a delay in the construction of offshore facilities and the industry-wide downturn.

The South Korean shipyard announced a gain of KRW53.7bn ($47.49m) in the third quarter, a plunge of 71% compared to the profit of KRW172bn in the same period of last year.

Revenue during the quarter reached KRW2.44trn, a fall of 25.3% year-on-year. SHI also posted a third quarter operating income of KRW84.6bn, down 53.4%.

“The biggest reason why shipbuilders are struggling is because of the delays in offshore rig projects, and until the deliveries are made, these projects will continue to weigh on the shipbuilders’ profit,” Park Moo Hyun, an analyst at Hana Daetoo Securities, was quoted saying.

“Although it is difficult to say when the companies will be able to turn to profit, I think it will take at least another year for them to recover from the aftermath,” Park said.

Meanwhile, compatriot Hyundai Heavy Industries booked a loss of KRW451.4bn in the third quarter, narrowing from the bigger deficit of KRW1.46trn in the year-ago period.