By Kwanwoo Jun
Shares of Hanwha Ocean advanced on Wednesday, driven by expectations for solid earnings growth and brisk contract wins this year.
The South Korean shipbuilder's stock rose 7.4% to close at 133,600 won, leading gains in local shipbuilding stocks. The stock outperformed the benchmark Kospi's 1.4% gain.
Hanwha, which operates a shipyard in Philadelphia, could benefit from an expected surge in U.S. demand for liquefied natural gas carriers from the second half of 2026, as global importers seek alternative supplies after LNG production in Qatar was virtually halted by the Middle East conflict, Kiwoom Securities analyst Lee Han-gyeol said in a note Wednesday.
The analyst is positive on Hanwha's military-vessel division, which is bidding for submarine projects in Canada, Saudi Arabia and the Philippines, as well as a frigate project in Thailand.
Kiwoom expects Hanwha's operating profit to jump 50% to 1.668 trillion won in 2026, equivalent to $1.13 billion, with revenue projected to rise 7.5% to 13.641 trillion won.
Nomura analyst Eon Hwang said in a recent note that Hanwha could secure $13.5 billion in new contracts this year, up 34% from 2025, supported by business opportunities with the U.S. Navy.
Separately, South Korean President Lee Jae Myung on Tuesday praised Hanwha's recent decision to award outsourced contract workers the same bonus increases as Hanwha staff.
"Our government hopes to spread a culture of mutual growth across the economy, following the example set by Hanwha Ocean," the human-rights lawyer-turned-leader told a meeting with business leaders, according to his office.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
03-11-26 0320ET
