As of 2 pm on September 23, major shipbuilding stocks remained weak. The share price of Hyundai Mipo Dockyard fell 1.2 percent compared to a day ago, while those of Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering marked a slight decline. Hyundai Heavy Industries shares, however, rose slightly 0.71 percent.
The shipbuilding industry’s profitability has deteriorated over the past four years since the summer of 2010, negatively affected by the orders it received when ship price was low.
Samsung Heavy Industries suffered more than 300 billion won loss in the first quarter, while Hyundai Heavy Industries marked a 1 trillion won loss in the second quarter. Their share prices fell more than 30 percent and 40 percent each this year.
The shipbuilding industry’s profitability, however, is expected to improve from the fourth quarter of this year thanks to the increase in highly profitable LNG carrier orders.
