Samsung Heavy Industries Co., Ltd.

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See more articles on 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 2018	KRW	USD
Revenue	5,265.11B	4,784.21M
Gross Profit	-78,795.94M	-71.59M
Operating income	-409,252.12M	-371.87M
Income before tax	-497,598.48M	-452.14M
Net income	-387,850.71M	-352.42M
EBITDA	-114,401.90M	-103.95M
Diluted EPS	-729.28	-0.66
Dividends Per Share	0	0
Total Assets	14,282.89B	12,800.58M
Total liabilities	7,536.61B	6,754.44M
Total equity	6,738.39B	6,039.06M
Operating cash flow	165,522.61M	150.40M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	12,879.06B	9,714.44B	10,414.18B	7,901.23B	5,265.11B
Gross Profit	704,989.00M	-1,025.16B	403,610.70M	-225,461.91M	-78,795.94M
Operating income	183,019.97M	-1,501.90B	-147,199.51M	-524,163.79M	-409,252.12M
Income before tax	190,454.70M	-1,461.15B	-68,545.69M	-463,899.24M	-497,598.48M
Net income	149,224.54M	-1,205.41B	-121,231.32M	-338,779.13M	-387,850.71M
EBITDA	467,676.25M	-1,197.97B	169,798.18M	-209,683.96M	-114,401.90M
Diluted EPS	542.08	-4,598.70	-433.05	-830.39	-729.28
Dividends Per Share	195.55	0	0	0	0
Total Assets	17,122.23B	17,301.59B	17,217.46B	13,818.11B	14,282.89B
Total liabilities	11,549.07B	13,035.84B	10,942.15B	8,020.66B	7,536.61B
Total equity	5,537.47B	4,237.36B	6,264.30B	5,789.56B	6,738.39B
Operating cash flow	-457,461.38M	620,279.37M	-1,554.75B	540,067.54M	165,522.61M

	Dec 2014	Dec 2015	Dec 2016	Dec 2017	Dec 2018
Revenue	12,234.79M	8,583.15M	8,976.28M	6,989.08M	4,784.21M
Gross Profit	669.72M	-905.78M	347.88M	-199.43M	-71.59M
Operating income	173.86M	-1,327.00M	-126.87M	-463.65M	-371.87M
Income before tax	180.92M	-1,291.00M	-59.08M	-410.34M	-452.14M
Net income	141.75M	-1,065.03M	-104.49M	-299.66M	-352.42M
EBITDA	444.28M	-1,058.46M	146.35M	-185.47M	-103.95M
Diluted EPS	0.51	-4.06	-0.37	-0.73	-0.66
Dividends Per Share	0.18	0	0	0	0
Total Assets	15,577.70M	14,755.52M	14,255.22M	12,907.48M	12,800.58M
Total liabilities	10,507.27M	11,117.51M	9,059.57M	7,492.09M	6,754.44M
Total equity	5,037.96M	3,613.80M	5,186.54M	5,408.02M	6,039.06M
Operating cash flow	-434.57M	548.04M	-1,340.08M	477.72M	150.40M

Valuation Measures

Dec 2018
PER	--
ROA	-2.76%
ROE	-6.19%
Operating margin	-7.77%
Profit margin	-7.36%

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 (9.1%)
Samsung Heavy Industries Co., Ltd. (4.1%)
Samsung Heavy Industries Co., Ltd. ESOA (3.4%)
Samsung Life Insurance Co., Ltd. (3.0%)
Samsung Electro-Mechanics Co., Ltd. (2.1%)
The Vanguard Group, Inc. (1.8%)
Samsung Asset Management Co., Ltd. (1.7%)
BlackRock Fund Advisors (1.6%)
Dimensional Fund Advisors LP (1.0%)

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

Daejung Offshore Wind Power Co., Ltd.
Samsung Heavy Industries Co., Ltd. ESOA
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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
Hanjin Heavy Industries & Construction Co., Ltd
Daewoo Shipbuilding & Marine Engineering Co., Ltd
McDermott International, Inc.
CSBC Corp. Taiwan
Gaztransport & Technigaz SA
TechnipFMC Plc
Hyundai Heavy Industries Holdings Co., Ltd.
Hankuk Carbon Co., Ltd

Last Updated on 13 Nov, 2019