''''Samsung Heavy Industries in Q1 ''''Turnaround

□ Samsung Heavy Industries announced on 27th its preliminary performance of 1.6051 trillion won in sales and 19.6 billion won in operating profit in the first quarter of 2023.

□ The quarterly operating surplus is the first achievement in 22 quarters since the third quarter of 2017, an improvement of KRW 355.4 billion from the previous quarter''''s deficit of KRW 335.8 billion.

The improvement in operating profit was mainly due to the effect of reducing fixed costs led by the increase in annual sales with good order performance since 2021, recovery of ship price and raw material price. 

□ Despite the impact of a decrease in working days, sales in the first quarter were similar to the previous quarter (1.6346 trillion won).

From Q2, a significant increase in sales is expected as the volume of high priced ship construction increases.

□ "The turnover in Q1 means a shift to a stable surplus structure this year by recovering sales and improving profitability," an official at SHI said. "As profits increase toward the second half of the year, we expect to reach the annual operating profit of 200 billion won that we announced at the beginning of this year,"