Sales 73.1 Billion KRW · Operating Profit 3.5 Billion KRW · Net Profit 6 Billion KRW
Follow-up Investments in Energy Infrastructure Equipment and Facilities to Continue
Improved Financial Structure · Cost Reduction Increases Profitability
BH I, which has maintained a profit trend for two consecutive years, succeeded in increasing its profits in the first quarter of this year as well.
BH I, a company specializing in power generation equipment, announced on the 14th that its consolidated operating profit for the first quarter of this year recorded 3.5 billion KRW, an increase of 122.7% compared to the same period last year. Net profit for the same period reached 6 billion KRW, marking a 759.1% increase.
Sales slightly decreased to 73.1 billion KRW compared to the same period last year. Although the order backlog has recently increased significantly due to consecutive large-scale supply contracts signed since the end of last year, the recognition of project sales is expected to occur after the first quarter. The company explained that full performance reflection is scheduled to begin from the second quarter.
Profitability improved due to the strong performance of core businesses centered on flagship products such as Heat Recovery Steam Generators (HRSG) and company-wide cost reduction efforts. Unlike last year, the impact of low-profit projects has been completely resolved.
BH I also succeeded in significantly lowering its debt ratio in the first quarter, accelerating the improvement of financial soundness. As of 2022, BH I's debt ratio exceeded 800%, but it was drastically reduced to about 480% by the end of last year. As of the first quarter of this year, through asset revaluation and other measures, the company succeeded in lowering it further to 343%.
A BH I representative stated, “Despite the ongoing global impact of high interest rates and high inflation, BH I continues solid management based on its differentiated product competitiveness and excellent technological capabilities in the energy infrastructure sector,” adding, “We plan to continue this trend this year as well.”
He continued, “Due to the rapid growth of power-intensive upstream industries such as artificial intelligence (AI), data centers, semiconductors, and electric vehicles, follow-up investments in energy infrastructure equipment and facilities like power equipment are expected to continue,” and added, “With the company’s debt ratio further lowered in the first quarter, participation in various new projects has become possible.”
Last month, BH I secured a new HRSG supply contract from a major domestic conglomerate, bringing the total number of new projects secured this year to five. Since March, the total amount of newly secured orders has exceeded 320 billion KRW. BH I plans to accelerate performance growth through HRSG and nuclear power projects.
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