UPDATE-Hyundai Heavy seen in back in profit in Q1

Hyundai Heavy expected to swing to profit in Q1


Hyundai Heavy Industries is likely to report a return to profit in the first quarter of this year, as earnings from oil refinery business offset losses in offshore and plant construction segments, stock analysts said Tuesday.
In a report Tuesday, Kim Hyun of Shinhan Investment, a Seoul-based brokerage house, forecast an operating profit of 251.7 billion won ($220 million) for the January-March period for the world’s largest shipyard. Revenues would be around 10.4 trillion won, down 6.4 percent from the previous quarter, he said.
“It will mark a swing back to profits in 10 quarters,” the analyst said, joining other analysts in forecasting a turn to profit for the Ulsan-based shipbuilder. He also raised the stock’s target price to 130,000 won from 110,000 won.
Shares of Hyundai Heavy closed 1.77 percent higher at 115,000 won against the overall KOSPI’s 0.11 percent gain Tuesday.
The firm, in a filing on Monday, reported a 42.6 percent on-year drop in new orders in the first quarter to an estimated $1.7 billion.
By Lee Sun-young (milaya@heraldcorp.com)