HD Hyundai Q2 Operating Profit 1.2359 Trillion Won... "Refining and Construction Equipment Profit Expansion"

[Asia Economy Reporter Oh Hyung-gil] HD Hyundai, the holding company of Hyundai Heavy Industries Group, announced on the 29th that its operating profit for the second quarter increased by 569.5% year-on-year to 1.2359 trillion KRW. During the same period, sales rose 148.9% to 15.754 trillion KRW.

The company explained that this was due to the full reflection of Korea Shipbuilding & Offshore Engineering's performance, which was consolidated in March, from the second quarter, as well as expanded sales in the refining sector due to rising oil prices. Operating profit significantly increased based on improved profitability in the refining sector and strong performances from major subsidiaries such as construction machinery.

By affiliate, Hyundai Oilbank recorded sales of 8.8008 trillion KRW and operating profit of 1.3703 trillion KRW, driven by improved refining margins and inventory valuation gains due to rising oil prices.

In the construction machinery sector, Hyundai Genuine posted sales of 2.1167 trillion KRW and operating profit of 112.2 billion KRW, leading performance by targeting advanced markets such as Europe and North America, as well as emerging markets like Southeast Asia, based on a diverse product lineup.

Hyundai Electric achieved sales of 540.1 billion KRW and operating profit of 27.2 billion KRW, supported by expanded orders in the Middle East market and increased sales of ship-related products. Hyundai Global Service recorded sales of 383 billion KRW and operating profit of 34.8 billion KRW, driven by strong orders for eco-friendly ship retrofits and ship parts services. Hyundai Robotics succeeded in turning a profit with an operating profit of 4.3 billion KRW.

Korea Shipbuilding & Offshore Engineering posted sales of 4.1886 trillion KRW in the second quarter but recorded an operating loss of 265.1 billion KRW. Although sales increased due to higher shipbuilding volume, it posted losses for consecutive quarters due to one-off factors including rising steel prices.

A Hyundai Heavy Industries Group official stated, "Significant performance improvement is expected in the second half due to an increased proportion of high value-added shipbuilding in the shipbuilding sector, and a full-scale increase in sales and net profit in the petrochemical business is anticipated. We will do our best to maintain solid performance through eco-friendly technology development and sales strategies tailored to market characteristics."