HD Hyundai Posts Record Quarterly Operating Profit of 1.28 Trillion Won in Q1, Up 62.1% YoY

Profitability Increases in Shipbuilding and Power Equipment; Refining Declines
First Quarter Sales Reach 17 Trillion Won, Operating Profit at 1.2864 Trillion Won
Operating Margin at 7.5%... Net Profit for the Period at 777.4 Billion Won

HD Hyundai posted an operating profit in the 1 trillion won range in the first quarter of this year, marking its highest-ever quarterly performance. While the refining division underperformed, profitability increased in shipbuilding and power equipment divisions outside of refining.

On April 29, HD Hyundai announced through a regulatory filing that its sales for the first quarter of this year reached 17.0869 trillion won, with an operating profit of 1.2864 trillion won. These figures represent increases of 46.5% and 621%, respectively, compared to the same period last year. Notably, the operating profit in the 1 trillion won range is the highest on a quarterly basis. The operating margin also rose by 2.7 percentage points year-on-year, reaching 7.5% in the first quarter of this year, up from 4.8% in the first quarter of last year.

In the first quarter of this year, HD Hyundai Robotics accounted for 40.9% of total sales, holding the largest share. HD Korea Shipbuilding & Offshore Engineering followed with 38.9% of total sales, and HD Hyundai Site Solution accounted for 11.3%. Operating profit was primarily driven by businesses outside of refining. The operating profit of HD Hyundai Oilbank, the refining subsidiary, fell sharply to 31.1 billion won, compared to 305.2 billion won in the same period last year. However, in business areas outside of refining, operating profit reached the 1 trillion won range in the first quarter of this year, following 499.9 billion won in the same period last year and 758.8 billion won in the previous quarter, the fourth quarter of last year.

Net profit for the period was estimated at 777.4 billion won, up 52.9% from 508.3 billion won in the same period last year.