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Producer Manufacturing

Samsung Heavy Industries Co., Ltd.

Company Background

Samsung Heavy Industries is one of South Korea's top-three shipbuilders, alongside Hyundai Heavy Industries and Daewoo Shipbuilding & Marine Engineering. The company's strength is in high-value-added vessels, such as liquefied natural gas carriers, tankers and drill ships. It also makes offshore plants, such as floating production, storage and offloading systems.

The company was set up in 1974 by the Samsung group, South Korea's largest conglomerate. It is one of the largest shipbuilders in the world in terms of shipbuilding volume after the market leader Hyundai Heavy Industries. The company has increased orders for high-value-added vessels since the turn of the century.

In recent years, Samsung Heavy Industries has been boosting the number of orders it gets for its offshore plants, but it often gets saddled with construction delay charges. Improving the profitability of this business line is a pressing issue.

In September 2014, the company said it was planning to merge with Samsung Engineering, which focuses on onshore plants, to improve its technologies and streamline operations. The company, however, dropped the merger plan because buying back the shares of huge stockholders opposed to the deal proved too costly.

"We will give careful thought to the merger plan in view of market conditions and shareholders' opinions," a company representative said.

Business Summary

Samsung Heavy Industries Co., Ltd. engages in the production and sale of vessels, plant, and power systems. It operates through the following business areas: Shipbuilding, Engineering and Construction, Power and Control Systems, and Wind Energy. The Shipbuilding business provides tanker, container, passenger and drill ships, crude oil production and storage facility, fixed platform, and other shipbuilding products. The Engineering and Construction business offers architecture and development works, housing, civil works, and plants. The Power and Control Systems business include digital vessel, and home and building systems. The Wind Energy business provides wind power generators. The company was founded on August 5, 1974 and is headquartered in Seongnam, South Korea.

Financial Highlights

Dec 2020 KRWUSD
Revenue6,860.31B5,814.38M
Gross Profit-521,527.39M-442.01M
Operating income-1,054.14B-893.42M
Income before tax-1,472.47B-1,247.98M
Net income-1,482.44B-1,256.42M
EBITDA-771,685.62M-654.03M
Diluted EPS-2,314.98-1.96
Dividends Per Share00
Total Assets12,922.17B11,895.58M
Total liabilities9,203.93B8,472.74M
Total equity3,724.21B3,428.35M
Operating cash flow87,133.37M73.84M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 10,414.18B 7,901.23B 5,265.11B 7,349.65B 6,860.31B
Gross Profit 403,610.70M -225,461.91M -78,795.94M 7,827.27M -521,527.39M
Operating income -147,199.51M -524,163.79M -409,252.12M -616,585.52M -1,054.14B
Income before tax -68,545.69M -463,899.24M -497,598.48M -1,139.24B -1,472.47B
Net income -121,231.32M -338,779.13M -387,850.71M -1,310.84B -1,482.44B
EBITDA 169,798.18M -209,683.96M -114,401.90M -299,626.00M -771,685.62M
Diluted EPS -408.56 -783.43 -688.03 -2,047.00 -2,314.98
Dividends Per Share 0 0 0 0 0
Total Assets 17,217.46B 13,818.11B 14,282.89B 13,600.08B 12,922.17B
Total liabilities 10,942.15B 8,020.66B 7,536.61B 8,351.15B 9,203.93B
Total equity 6,264.30B 5,789.56B 6,738.39B 5,245.24B 3,724.21B
Operating cash flow -1,554.75B 540,067.54M 165,522.61M -484,764.96M 87,133.37M
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 8,976.28M 6,989.08M 4,784.21M 6,302.31M 5,814.38M
Gross Profit 347.88M -199.43M -71.59M 6.71M -442.01M
Operating income -126.87M -463.65M -371.87M -528.72M -893.42M
Income before tax -59.08M -410.34M -452.14M -976.90M -1,247.98M
Net income -104.49M -299.66M -352.42M -1,124.04M -1,256.42M
EBITDA 146.35M -185.47M -103.95M -256.92M -654.03M
Diluted EPS -0.35 -0.69 -0.62 -1.75 -1.96
Dividends Per Share 0 0 0 0 0
Total Assets 14,255.22M 12,907.48M 12,800.58M 11,760.20M 11,895.58M
Total liabilities 9,059.57M 7,492.09M 6,754.44M 7,221.37M 8,472.74M
Total equity 5,186.54M 5,408.02M 6,039.06M 4,535.64M 3,428.35M
Operating cash flow -1,340.08M 477.72M 150.40M -415.68M 73.84M

Valuation Measures

Dec 2020
PER--
ROA-11.17%
ROE-33.05%
Operating margin-15.36%
Profit margin-21.60%

Key executives

  • Chief Executive Officer & Director: Joon-Wu Nam
  • Managing Director & Head-Finance: Dong-Seol Kim
  • Managing Director & Head-Technology: Jin-Taek Jeong
  • Vice President & Head-Compliance Management: Hyun-Dong Lee
  • Director & Head-Management Support: Jin-Han Bae

Shareholders

  • Samsung Electronics Co., Ltd. (15.9%)
  • National Pension Service of Korea (6.1%)
  • Samsung Heavy Industries Co., Ltd. (4.1%)
  • Samsung Life Insurance Co., Ltd. (3.0%)
  • Samsung Electro-Mechanics Co., Ltd. (2.1%)
  • Samsung Heavy Industries Co., Ltd. ESOA (1.7%)
  • The Vanguard Group, Inc. (1.7%)
  • BlackRock Fund Advisors (1.6%)
  • Samsung Asset Management Co., Ltd. (1.3%)
  • Dimensional Fund Advisors LP (0.7%)

Contact Details

  • Website:http://shi.samsung.co.kr
  • Address: 23 Pangyo-ro 227beon-gil, Bundang-gu, Seongnam, 13486, South Korea
  • Phone: +82.31.5171.7000

Related Companies

  • Samsung Heavy Industries India Pvt Ltd.
  • Daejung Offshore Wind Power Co., Ltd.
  • Samsung Heavy Industries Co., Ltd. ESOA
  • SM Solution Co. Ltd.
  • Rongcheng Gaya Heavy Industries Co. Ltd.
  • Samsung Heavy Industries (Rongcheng) Co. Ltd.
  • Samsung Heavy Industries (Ningbo) Co. Ltd.
  • Samsung (China) Investment Co., Ltd.
  • Mustang Co. Ltd.

Competitors

  • KOREA SHIPBUILDING & OFFSHORE ENGINEERING CO.,LTD.
  • Hyundai Mipo Dockyard Co., Ltd
  • Daewoo Shipbuilding & Marine Engineering Co., Ltd
  • Gaztransport & Technigaz SA
Last Updated on 17 Sep, 2021

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