[Alpha Biz= Kim Jisun] Hanwha Engine Secures $4.8 Billion Ship Engine Supply Contract with Asian Shipping Company
Hanwha Engine announced on Wednesday that it has signed a ship engine supply contract worth 628.2 billion KRW with a shipping company in the Asia region.
This contract represents 73.6% of Hanwha Engine’s total sales for the previous year (8.544 trillion KRW), marking a major order. The delivery is scheduled to be completed by November 2028. Hanwha Engine stated that it could not disclose the specific details of the contract or the name of the client to maintain business confidentiality.
Earlier on January 6, Hanwha Engine also secured another ship engine supply contract with Samsung Heavy Industries worth 83.6 billion KRW. With these two successful orders early in the year, the company has raised expectations for its 2025 financial performance.
Hanwha Engine, which was rebranded after Hanwha Group acquired HSD Engine, the world's second-largest manufacturer of low-speed ship engines, in February 2023, has shown significant improvement. The company posted a 29.5 billion KRW loss in 2022 but turned profitable with 8.7 billion KRW in 2023, and reported 53.3 billion KRW in operating profit by the third quarter of the same year under Hanwha’s ownership.
As of the third quarter of 2023, Hanwha Engine's order backlog amounted to 32.428 trillion KRW, a 27.3% increase compared to the end of 2022 (25.473 trillion KRW). Hanwha Engine has a strong position in dual-fuel (DF) engines used in eco-friendly ships, with DF engines accounting for about 90% of its total order backlog.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
