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 2021	KRW	USD
Revenue	6,738.16B	5,884.03M
Gross Profit	-679,863.14M	-593.68M
Operating income	-1,195.79B	-1,044.21M
Income before tax	-1,348.00B	-1,177.13M
Net income	-1,445.06B	-1,261.89M
EBITDA	-996,447.87M	-870.13M
Diluted EPS	-2,173.51	-1.89
Dividends Per Share	0	0
Total Assets	12,138.59B	10,211.22M
Total liabilities	8,041.32B	6,764.52M
Total equity	4,111.04B	3,458.29M
Operating cash flow	620,730.12M	542.04M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	7,901.23B	5,265.11B	7,349.65B	6,860.31B	6,738.16B
Gross Profit	-225,461.91M	-78,795.94M	7,827.27M	-521,527.39M	-679,863.14M
Operating income	-524,163.79M	-409,252.12M	-616,585.52M	-1,054.14B	-1,195.79B
Income before tax	-463,899.24M	-497,598.48M	-1,139.24B	-1,472.47B	-1,348.00B
Net income	-338,779.13M	-387,850.71M	-1,310.84B	-1,482.44B	-1,445.06B
EBITDA	-209,683.96M	-114,401.90M	-299,626.00M	-771,685.62M	-996,447.87M
Diluted EPS	-783.43	-688.03	-2,047.00	-2,314.98	-2,173.51
Dividends Per Share	0	0	0	0	0
Total Assets	13,818.11B	14,282.89B	13,600.08B	12,922.17B	12,138.59B
Total liabilities	8,020.66B	7,536.61B	8,351.15B	9,203.93B	8,041.32B
Total equity	5,789.56B	6,738.39B	5,245.24B	3,724.21B	4,111.04B
Operating cash flow	540,067.54M	165,522.61M	-484,764.96M	87,133.37M	620,730.12M

	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021
Revenue	6,989.08M	4,784.21M	6,302.31M	5,814.38M	5,884.03M
Gross Profit	-199.43M	-71.59M	6.71M	-442.01M	-593.68M
Operating income	-463.65M	-371.87M	-528.72M	-893.42M	-1,044.21M
Income before tax	-410.34M	-452.14M	-976.90M	-1,247.98M	-1,177.13M
Net income	-299.66M	-352.42M	-1,124.04M	-1,256.42M	-1,261.89M
EBITDA	-185.47M	-103.95M	-256.92M	-654.03M	-870.13M
Diluted EPS	-0.69	-0.62	-1.75	-1.96	-1.89
Dividends Per Share	0	0	0	0	0
Total Assets	12,907.48M	12,800.58M	11,760.20M	11,895.58M	10,211.22M
Total liabilities	7,492.09M	6,754.44M	7,221.37M	8,472.74M	6,764.52M
Total equity	5,408.02M	6,039.06M	4,535.64M	3,428.35M	3,458.29M
Operating cash flow	477.72M	150.40M	-415.68M	73.84M	542.04M

Valuation Measures

Dec 2021
PER	--
ROA	-11.53%
ROE	-36.88%
Operating margin	-17.74%
Profit margin	-21.44%

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. (15.2%)
Samsung Heavy Industries Co., Ltd. ESOA (6.2%)
National Pension Service of Korea (6.0%)
Samsung Heavy Industries Co., Ltd. (2.9%)
Samsung Electro-Mechanics Co., Ltd. (2.9%)
Samsung Life Insurance Co., Ltd. (2.9%)
The Vanguard Group, Inc. (1.7%)
BlackRock Fund Advisors (1.5%)
Samsung Asset Management Co., Ltd. (1.4%)
Dimensional Fund Advisors LP (0.6%)

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

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Competitors

Hyundai Mipo Dockyard Co., Ltd
Daewoo Shipbuilding & Marine Engineering Co., Ltd
KOREA SHIPBUILDING & OFFSHORE ENGINEERING CO.,LTD.
Hyundai Heavy Industries Co., Ltd.
Gaztransport & Technigaz SA
HJ SHIPBUILDING & CONSTRUCTION CO. LTD

Last Updated on 18 May, 2022