STX Shipbuilding returns to profit in 3rd quarter

STX Shipbuilding Co., one of Korea's major shipyard, said Nov. 14 that it is now black from being in the red during the third quarter of last year, thanks to increased ship prices.

STX Shipbuilding earned 3.4 billion won (US$3.6 million) in the July-September period, compared with a loss of 8.6 billion won a year ago, the company said in a regulatory filing.

Sales jumped 54 percent year on-year to 408.5 billion won, helping the company register an operating profit of 13.3 billion won, a turnaround from the 31.1 billion won loss of a year earlier.

Shares of STX Shipbuilding closed down 1.85 percent at 13,300 won on the Seoul bourse. The results were released after the market closed.

"Thanks to rising ship prices and stable raw material prices, we expect improved earnings ahead," the company said, disclosing that it aims to log 1.6 trillion won in total sales this year.

Korea's shipyards have clinched record-high orders this year, thanks to strong demands for crude carriers and offshore exploration facilities amid high oil prices.