HD Hyundai announced on the 31st that its operating profit for the second quarter this year was provisionally recorded at 1.1389 trillion won, a 29.4% increase compared to the same period last year.
During the same period, sales revenue decreased by 2% to 17.2111 trillion won, and net income for the period was provisionally reported at 488 billion won, a decrease of 10.3%.
HD Hyundai explained that the increase in operating profit was due to the expansion of profitability in the institutional sector of shipbuilding and solid performance across major businesses such as power equipment and construction machinery.
By institutional sector, HD Korea Shipbuilding & Offshore Engineering in the shipbuilding and marine sector achieved an operating profit of 953.6 billion won in the second quarter, marking a 153.3% increase compared to the same period last year. Sales revenue also rose by 12.3% to 7.4284 trillion won during the same period.
HD Hyundai Marine Solution experienced growth in its core business, the After Market (AM) sector, and digital solutions due to the booming new ship market and strengthening environmental regulations, achieving an operating profit of 83 billion won in the second quarter, up 16.9% from the same period last year. Sales revenue also increased by 6.8% during the same period, reaching 467.7 billion won.
In the construction machinery institutional sector, HD Hyundai XiteSolution recorded sales of 2.14 trillion won, a 6.3% increase compared to the same period last year, due to the expansion of infrastructure investment and resource development demand in emerging markets. However, operating profit decreased by 10.6% to 151.4 billion won due to one-time expenses associated with the consolidation of its production facilities in China.
The company stated that it plans to focus on securing market share and profitability through customized product supply and strengthening channel competitiveness.
HD Hyundai Oilbank in the energy and refining institutional sector recorded second-quarter sales of 6.5417 trillion won and an operating loss of 241.3 billion won. Sales decreased by 16.6% compared to the same period last year due to falling oil prices and exchange rates, resulting in a switch to an operating loss.
HD Hyundai Electric reported second-quarter sales of 906.2 billion won and operating profit of 209.1 billion won, down 1.2% and 0.5%, respectively, compared to the same period last year.
The company noted that despite the base effect from last year's temporary increase in energy storage system (ESS) sales, the operating profit margin was recorded at 23.1% amid ongoing global investment expansion in power infrastructure.
An HD Hyundai official said, "As profitability in the shipbuilding and marine sector continues to expand, stable results are being maintained in the power equipment and construction machinery sectors," adding, "The energy and refining sector will also enhance its profitability."