Hyundai Heavy Holdings, 3Q Operating Profit 301.8 Billion KRW... Up 199% YoY (Update)

Hyundai Heavy Industries Holdings, Q3 Sales Reach 7.2775 Trillion KRW

LNG-powered ultra-large container ship built by Hyundai Samho Heavy Industries

[Asia Economy Reporter Choi Dae-yeol] Hyundai Heavy Industries Holdings announced on the 28th that its consolidated operating profit for the third quarter reached 301.8 billion KRW, an increase of 198.5% compared to the same period last year. While the shipbuilding division recorded losses last quarter due to rising steel prices, it turned profitable, and key business sectors such as refining and construction machinery showed improved performance.

Sales increased by 59% during the same period, reaching 7.2775 trillion KRW. The cumulative operating profit up to the third quarter surpassed 1 trillion KRW at 1.0207 trillion KRW. The company expects the performance of shipbuilding, refining, and construction machinery sectors to improve in the fourth quarter, anticipating this year’s results to be the best ever.

Korea Shipbuilding & Offshore Engineering posted a 248.2% increase in operating profit to 141.7 billion KRW for the same period. Sales rose by 2.8% to 3.5579 trillion KRW. The company succeeded in turning a profit due to factors such as exchange rates, rising newbuilding prices, and reversal of construction loss provisions.

Hyundai Oilbank, the refining division, also recorded an operating profit of 173.1 billion KRW. Operating profit increased due to rising oil prices and product crack spreads. Refining margins have been above 7 dollars (Singapore basis) since this month, and profitability is expected to gradually improve.

Hyundai Construction Equipment and Hyundai Doosan Infracore posted operating profits of 43 billion KRW and 25.5 billion KRW, respectively. Although demand in China declined, the companies secured their positions in emerging markets such as Southeast Asia and Latin America, and demand increased mainly in advanced markets like Europe, leading to improved performance. Hyundai Electric recorded an operating profit of 7.4 billion KRW and sales of 394.1 billion KRW. Hyundai Global Service posted an operating profit of 21.8 billion KRW and sales of 270.1 billion KRW.

Hyundai Heavy Industries Holdings stated, "Based on the business restructuring focused on shipbuilding, refining, and construction machinery, and the balanced performance improvement of major subsidiaries, cumulative operating profit for the third quarter exceeded 1 trillion KRW." The company added, "We will continue stable performance through market leadership by developing eco-friendly technologies, profitability-focused sales strategies, and the year-end start-up of the HPC (Olefin Petrochemical Complex)."