South Korean shipbuilding company Daewoo Shipbuilding and Marine Engineering (DSME) wrapped up the first six months of 2018 with a lower profit year over year.

The shipbuilder delivered a net income of KRW 432.6 billion (USD 380.4 million) in the first half of the year, compared to KRW 1.488 trillion seen in the corresponding period a year earlier. This was a decline of more than 70 percent.

In addition, operating income stood at KRW 528.06 billion in H1 2018, against KRW 888.03 billion recorded in the same period of 2017.

Despite the lack of one-off gains, DSME — one of the country’s “big three” shipbuilders — managed to remain profitable.

In line with its restructuring process, DSME decided last year to sell its 51% stake in Daewoo Mangalia Heavy Industries (DMHI) shipyard in Romania. With the sale of the insolvent subsidiary, DSME intended to focus on Okpo Shipyard and improve its financial structure. The transaction was completed in July 2018.

Reflecting on the sale of its Mangalia stake, DSME explained that the disposal will have a financial impact in the third quarter of this year. Loss on disposal will amount to KRW 460 billion, the shipbuilder said in a statement.

Net income for the three-month period ended June 30, 2018, decreased to KRW 206.24 billion from KRW 1.255 trillion reported in Q2 2017.

What is more, operating profit was KRW 229.44 billion in Q2 2018, down from an operating profit of KRW 664.74 billion posted in the second quarter last year.

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