Productivity Up and Delivery of High Value-Added Ships
Balanced Growth Across All Business Divisions
HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for HD Hyundai’s shipbuilding division, announced on July 31 that its consolidated sales for the second quarter reached KRW 7.4284 trillion, with operating profit at KRW 953.6 billion. These figures represent increases of 12.3% and 153.3%, respectively, compared to the same period last year.
Trial operation scene of a 13,000 TEU container carrier built and delivered last year by HD Hyundai Heavy Industries. HD Hyundai Heavy Industries
HD Korea Shipbuilding & Offshore Engineering stated that it achieved balanced growth across all business divisions due to an increase in working days and improved productivity, enhanced profitability from a higher proportion of high-priced ship sales, and increased sales in the engine and machinery division.
By business segment, the shipbuilding division recorded sales of KRW 6.2549 trillion and operating profit of KRW 805.6 billion, up 9.3% and 104.5% year-on-year, respectively, due to increased construction volume and the reflection of higher ship prices in sales.
The engine and machinery division posted sales of KRW 774 billion, a 29.6% increase from the same period last year, driven by higher demand for dual-fuel engines due to strengthened global environmental regulations and increased delivery volumes. Operating profit rose 120.7% to KRW 201.1 billion.
The offshore plant division also saw sales rise 56.9% year-on-year to KRW 247.9 billion, with operating profit at KRW 37.5 billion, reflecting expanded revenue recognition from major projects and improved profitability.
By affiliate, HD Hyundai Heavy Industries led the performance with sales of KRW 4.1471 trillion and operating profit of KRW 471.5 billion. HD Hyundai Samho and HD Hyundai Mipo also reported sales of KRW 2.1187 trillion and KRW 1.2345 trillion, and operating profits of KRW 371.7 billion and KRW 89.4 billion, respectively.
HD Hyundai Marine Engine achieved sales of KRW 99.3 billion and operating profit of KRW 17.4 billion, up 16.7% and 91.2% year-on-year, respectively, due to a higher proportion of high value-added engine sales, increased selling prices, and improved production efficiency.
HD Hyundai Energy Solution returned to profitability compared to the previous quarter, with sales of KRW 133.7 billion and operating profit of KRW 15.1 billion. Expanded sales of solar modules in both domestic and overseas markets, along with strong sales of new high-efficiency modules, contributed to improved profitability.
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