ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
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 2019 KRWUSD
Revenue7,349.65B6,302.31M
Gross Profit7,827.27M6.71M
Operating income-616,585.52M-528.72M
Income before tax-1,139.24B-976.90M
Net income-1,310.84B-1,124.04M
EBITDA-299,626.00M-256.92M
Diluted EPS-2,169.72-1.86
Dividends Per Share00
Total Assets13,600.08B11,760.20M
Total liabilities8,351.15B7,221.37M
Total equity5,245.24B4,535.64M
Operating cash flow-484,764.96M-415.68M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 9,714.44B 10,414.18B 7,901.23B 5,265.11B 7,349.65B
Gross Profit -1,025.16B 403,610.70M -225,461.91M -78,795.94M 7,827.27M
Operating income -1,501.90B -147,199.51M -524,163.79M -409,252.12M -616,585.52M
Income before tax -1,461.15B -68,545.69M -463,899.24M -497,598.48M -1,139.24B
Net income -1,205.41B -121,231.32M -338,779.13M -387,850.71M -1,310.84B
EBITDA -1,197.97B 169,798.18M -209,683.96M -114,401.90M -299,626.00M
Diluted EPS -4,598.70 -433.05 -830.39 -729.28 -2,169.72
Dividends Per Share 0 0 0 0 0
Total Assets 17,301.59B 17,217.46B 13,818.11B 14,282.89B 13,600.08B
Total liabilities 13,035.84B 10,942.15B 8,020.66B 7,536.61B 8,351.15B
Total equity 4,237.36B 6,264.30B 5,789.56B 6,738.39B 5,245.24B
Operating cash flow 620,279.37M -1,554.75B 540,067.54M 165,522.61M -484,764.96M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 8,583.15M 8,976.28M 6,989.08M 4,784.21M 6,302.31M
Gross Profit -905.78M 347.88M -199.43M -71.59M 6.71M
Operating income -1,327.00M -126.87M -463.65M -371.87M -528.72M
Income before tax -1,291.00M -59.08M -410.34M -452.14M -976.90M
Net income -1,065.03M -104.49M -299.66M -352.42M -1,124.04M
EBITDA -1,058.46M 146.35M -185.47M -103.95M -256.92M
Diluted EPS -4.06 -0.37 -0.73 -0.66 -1.86
Dividends Per Share 0 0 0 0 0
Total Assets 14,755.52M 14,255.22M 12,907.48M 12,800.58M 11,760.20M
Total liabilities 11,117.51M 9,059.57M 7,492.09M 6,754.44M 7,221.37M
Total equity 3,613.80M 5,186.54M 5,408.02M 6,039.06M 4,535.64M
Operating cash flow 548.04M -1,340.08M 477.72M 150.40M -415.68M

Valuation Measures

Dec 2019
PER--
ROA-9.40%
ROE-21.87%
Operating margin-8.38%
Profit margin-17.83%

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 (7.0%)
  • Samsung Heavy Industries Co., Ltd. (4.1%)
  • Samsung Life Insurance Co., Ltd. (3.0%)
  • Samsung Heavy Industries Co., Ltd. ESOA (2.4%)
  • Samsung Electro-Mechanics Co., Ltd. (2.1%)
  • The Vanguard Group, Inc. (2.0%)
  • BlackRock Fund Advisors (1.6%)
  • Dimensional Fund Advisors LP (0.8%)
  • Norges Bank Investment Management (0.5%)

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
  • TechnipFMC Plc
  • Hankuk Carbon Co., Ltd
Last Updated on 28 Oct, 2020

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more