"Profit recovery for H2 2012 is expected," regarding Samsung Heavy Industries.

The South Korean shipbuilder publicly announced that its turnover and operating profit in the fourth quarter decreased to KRW 3.2982trn ($2.95bn) and KRW 181.7bn, down by 8% and 43% each. Profits declined, as newbuildings ordered in 2009-2010, when newbuilding price were falling, started to reflect on turnover.

Analyst Lee Sang-Hwa from Hyundai Securities said, "It would be hard to expect profit turnaround in the first half 2012, as low-margin newbuildings still under construction, however, H2 2012 would escape from the bottomed profit by reflection of newbuilding drillship, etc., on the book from the second half."

Added, "Samsung would achieve profit recovery faster than other competitors."

Meanwhile, Analyst Sung Gi-Jong from Daewoo Securities said that Samsung made an upward adjustment for its 2012 new order target to $13.7bn. up by $1.2bn and offshore sector would ink around $10bn and commercial ship and others would win $3.5bn.

The Geojae-based yard plans to contract various products for offshore sector, such as floating facilities of drillship, FPSO, LNG-FPSO/FSRU, etc., and fixed platform of gas central processing facility, pipe line, etc.

In case of commercial ship sector, Samsung prospected to win LNG carrier, ultra-large boxship and some tankers.