Seul - Daewoo Shipbuilding & Marine Engineering (DSME), a leading South Korean shipbuilder working on a debt-restructuring plan, succeeded in shifting to an operating profit for the first time in six years. The turnaround is attributed to the massive restructuring plan that the shipbuilder has undertaken since 2015 to cut costs and put in place an efficient production system.
DSME announced on March 12 that it recorded an operating profit of 733 billion won (US $ 686.65 million) for 2017 based on consolidated financial statements, marking the first time it has posted a profit since 2011. The company’s sales dropped by 13.5% to 11.1 trillion won (US$10.4 billion) compared to the previous year but its net profit swung back into the black at 669.9 billion (US$627.54 million) won. Its debt ratio improved significantly from 2,185% at the end of 2016 to 281 percent at the end of 2017.
However, its annual performance improved but it posted 351 billion won (US$328.81 million) in operating loss in the fourth quarter last year, recording a loss for the first time in a year.