Sales of 29.9332 Trillion Won
Up 17.2% Year-on-Year
Increase in Deliveries of High Value-Added Vessels
HD Korea Shipbuilding & Offshore Engineering announced on February 9 that on a consolidated basis for last year, it posted revenue of 29.9332 trillion won and operating profit of 3.9045 trillion won. Compared with the previous year, revenue increased by 17.2% and operating profit by 172.3%, setting a new record high.
HD Korea Shipbuilding & Offshore Engineering explained that this performance was driven by an increase in deliveries of high value-added vessels and continued productivity improvements, which led to strong revenue and operating profit at its shipbuilding affiliates.
By affiliate, HD Hyundai Heavy Industries led the improvement in performance with revenue of 17.5806 trillion won and operating profit of 2.0375 trillion won. HD Hyundai Samho posted revenue of 8.0714 trillion won and operating profit of 1.3627 trillion won. HD Hyundai Mipo contributed to HD Korea Shipbuilding & Offshore Engineering achieving a profit for the third consecutive year, with cumulative revenue for the first three quarters of 3.7186 trillion won and operating profit of 357.8 billion won.
Ship engine affiliate HD Hyundai Marine Engine recorded revenue of 402.4 billion won and operating profit of 75.9 billion won, backed by increased ship engine volumes and higher revenue from its parts business. Solar affiliate HD Hyundai Energy Solutions reported revenue of 492.7 billion won and operating profit of 41.2 billion won, supported by higher domestic and overseas product sales and a recovery in selling prices.
By business segment, the shipbuilding segment saw continued productivity gains driven by higher construction volumes, a larger share of revenue from high-priced vessels, and process efficiency improvements. As a result, revenue rose 13.4% year-on-year to 25.0365 trillion won, while operating profit jumped 119.9% to 3.3149 trillion won.
The engine and machinery segment also delivered strong results, with revenue of 4.2859 trillion won and operating profit of 774.6 billion won, supported by increased sales of marine engines, a higher proportion of eco-friendly high value-added engines, and improved performance in the engine parts business.
In the offshore plant segment, expansion of work on existing projects drove revenue to 1.2436 trillion won, and operating profit to 137.9 billion won, marking a turnaround to profit from the previous year.
A representative of HD Korea Shipbuilding & Offshore Engineering said, "Based on our competitiveness in each business area, solid results are continuing across affiliates including shipbuilding and engines," adding, "We will enhance profitability through a selective order-taking strategy grounded in a stable order backlog."
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