BHI Achieves Largest Performance in 10 Years... "Nuclear Power and LNG Supercycle Continue This Year"

BHIG achieved its highest performance in sales, operating profit, and net profit in 10 years, driven by the global increase in power demand.

BHIG announced on the 7th through a disclosure of a change of more than 30% in sales or profit structure that its consolidated sales for last year increased by 10.2% year-on-year to 404.8 billion KRW. During the same period, operating profit and net profit rose by 56% and 166.8%, respectively, reaching 23.5 billion KRW and 19.9 billion KRW.

The strong performance of BHIG this time is attributed to the full-scale expansion of revenue recognition from power generation facilities consecutively ordered not only in Korea but also in overseas markets such as Japan and the Middle East last year. BHIG recorded a record-high new order amount of 1.48 trillion KRW throughout last year.

Due to the characteristics of the power infrastructure industry, where revenue recognition is made over multiple years according to the progress of construction, the company expects to maintain a stable growth trend in performance for the next several years.

Last year, BHIG secured a total of 10 orders for liquefied natural gas (LNG) combined cycle power plant heat recovery steam generators (HRSG) and 4 orders for nuclear power plant balance of plant (BOP) auxiliary equipment both domestically and internationally. Among these, HRSGs require about 1.5 to 2 years of construction period and are characterized by a faster build speed compared to other power infrastructure facilities.

This year, with the global power demand expected to continue increasing, BHIG plans to accelerate performance growth in line with the expansion of LNG conversion. The company intends to actively pursue additional project orders not only in existing key markets such as the Middle East and Southeast Asia but also in new markets like North America.

A BHIG official said, “Thanks to the global revival of the nuclear power industry and the explosive growth of the LNG market last year, we succeeded in securing large-scale orders consecutively and surpassed annual sales of 400 billion KRW again. Not only did we achieve simple external growth, but operating profit and net profit also recorded the second-highest levels in the company’s history.”

He added, “As the boom in the nuclear power and LNG markets is expected to continue this year, the growth trend in performance is likely to persist. We will focus on securing additional orders in the global market by leveraging our excellent technology and product competitiveness and aim to achieve even greater results.”

Meanwhile, BHIG disclosed that it incurred a derivative product valuation loss of 17 billion KRW on the day. This is an accounting loss on the books caused by the sharp rise in the won-dollar exchange rate, with no actual cash outflow. Generally, 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, and the loss amount may vary depending on future exchange rate changes.