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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 2021 KRWUSD
Revenue6,738.16B5,884.03M
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 Share00
Total Assets12,138.59B10,211.22M
Total liabilities8,041.32B6,764.52M
Total equity4,111.04B3,458.29M
Operating cash flow620,730.12M542.04M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 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 2017Dec 2018Dec 2019Dec 2020Dec 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

Related Companies

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  • SHI-MCI FZE
  • Samsung Heavy Industries Nigeria Co., Ltd.
  • Samsung Heavy Industries (M) Sdn. Bhd.
  • Camellia Consulting Corp.
  • 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.
  • Mustang Co. Ltd.

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

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