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 were trading 2.21 percent higher at 115,500 won as of 10:58 a.m. 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)