HD Hyundai's institutional sector intermediate holding company, HD Korea Shipbuilding & Offshore Engineering, saw its operating profit in the first quarter (January to March) increase more than fivefold compared to the first quarter of last year. The shipbuilding subsidiaries have improved profitability by focusing on high-value-added vessels.
HD Korea Shipbuilding & Offshore Engineering reported on the 24th that its first-quarter revenue was 6.0717 trillion won, a 22.8% increase compared to the first quarter of last year. During the same period, operating profit increased by 436.3% to 859.2 billion won. The company recorded a profit for eight consecutive quarters. Net profit for the period was recorded at 611.6 billion won, an increase of 216.4%.
HD Korea Shipbuilding & Offshore Engineering explained, "Despite a decrease in working days due to seasonal factors, the company maintained growth through productivity improvements, increased construction volume, a higher proportion of sales of high-priced vessels, and improved profitability from selective orders."
By institutional sector, the shipbuilding sector recorded first-quarter revenue of 5.8451 trillion won, an increase of 21.6% compared to the first quarter of last year, and operating profit of 781.4 billion won, a rise of 207.2%. During the same period, the engine machinery sector saw revenue increase by 48.7% to 667.2 billion won and operating profit rise by 103.3% to 154.3 billion won, thanks to the increased share of dual-fuel engines amid strengthened eco-friendly regulations, rising engine prices, and increased delivery volume. The offshore plant sector reported revenue of 161.3 billion won, an increase of 43.8%, and operating profit of 6.6 billion won.
By subsidiary, the shipbuilding subsidiary HD Hyundai Heavy Industries recorded first-quarter revenue of 3.8225 trillion won and operating profit of 433.7 billion won. HD Hyundai Samho reported revenue of 1.9664 trillion won and operating profit of 365.9 billion won. HD Hyundai Mipo recorded revenue of 1.1838 trillion won and operating profit of 68.5 billion won.
The ship engine subsidiary HD Hyundai Marine Engine reported first-quarter revenue of 83 billion won, a 35.3% increase compared to the first quarter of last year. Operating profit grew by 64.4% to 10.3 billion won. Since being integrated into the HD Hyundai Group last year, the company has improved its performance due to increased engine volume and production efficiency.
HD Korea Shipbuilding & Offshore Engineering stated, "We will lead the future ship market through advanced digital and eco-friendly technologies, the establishment of smart shipyards, autonomous navigation, small modular reactors (SMR), and electrification technologies."