BHI Reports Operating Profit of 9.5 Billion KRW in H1, Up 775% YoY... "Four Consecutive Quarters of Profit"

BH I announced on the 14th that its consolidated operating profit for the first half of this year increased by 775.15% compared to the same period last year, reaching 9.51 billion KRW. During the same period, net profit achieved 7.493 billion KRW, successfully turning to a surplus. Sales amounted to 159.43 billion KRW.

On a quarterly basis as well, BH I achieved operating profit of 5.98 billion KRW and net profit of 1.052 billion KRW in the second quarter of this year, marking a return to profitability. This continued the streak of four consecutive quarters of operating profit. Sales for the same period recorded 86.39 billion KRW.

According to the company, despite the unstable global economic situation, focusing on improving profitability allowed them to maintain a profit surplus trend in the first half of the year. BH I expects that revenue recognition for orders secured earlier this year will begin in the second half, enabling significant sales expansion and profit growth starting from the third quarter.

Meanwhile, according to the global power generation research specialist institution ‘Mccoy Report,’ BH I ranked first in the global Heat Recovery Steam Generator (HRSG) manufacturing sector for the second quarter of this year, following the first quarter. As of August, BH I has newly secured a total of 14 HRSG orders this year.

A BH I official stated, “Despite the unfavorable internal and external business environment caused by various reasons such as wars in recent years, our company has continued efforts to grow steadily by strengthening fundamentals rather than reckless external expansion,” adding, “As a result, we were able to maintain profitability in the second quarter as well.”

He continued, “In the second half of the year, new orders for various power generation facilities, including the company’s main product, combined cycle power generation main equipment (HRSG), as well as nuclear power auxiliary equipment (BOP), are expected to continue,” and added, “We expect to exceed 1 trillion KRW in new orders this year and will raise our target order amount to 1.3 trillion KRW and do our best to achieve it.”

On the same day, BH I disclosed that it incurred a derivative product valuation loss of 4.5 billion KRW. This loss was due to the sharp rise in the KRW-USD exchange rate and is an accounting loss without actual cash outflow. Typically, companies with a high export ratio often enter into derivative contracts such as currency forwards for part of their order backlog to hedge exchange rate fluctuation risks. The company explained that this loss may vary depending on future exchange rate conditions.