HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for the HD Hyundai institutional sector's shipbuilding arm, posted operating profit approaching 4 trillion won last year on the back of increased deliveries of high value-added ships and improved productivity. Buoyed by strong results across its shipbuilding affiliates, it stayed in the black for a third straight year and set a record for its best performance since the launch of the integrated entity.
HD Korea Shipbuilding & Offshore Engineering said in a regulatory filing on Feb. 9 that, on a consolidation basis, preliminary operating profit for last year came to 3.9045 trillion won, up 172.3% from a year earlier. Revenue rose 17.2% to 29.9332 trillion won.
Operating profit in the fourth quarter was 1.0379 trillion won, up 108% from a year earlier. Revenue for the quarter was 8.1516 trillion won.
By affiliate, HD Hyundai Heavy Industries led the improvement 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 1.3628 trillion won, contributing to HD Korea Shipbuilding & Offshore Engineering's third consecutive annual profit.
HD Hyundai Mipo recorded cumulative revenue of 3.7186 trillion won and operating profit of 358.7 billion won through the third quarter. Due to its merger with HD Hyundai Heavy Industries, the December portion of its fourth-quarter results was reflected in HD Hyundai Heavy Industries' earnings.
Ship engine affiliate HD Hyundai Marine Engine reported revenue of 402.4 billion won and operating profit of 75.9 billion won on increased ship engine volumes and higher sales in the parts business. Solar affiliate HD Hyundai Energy Solutions posted revenue of 492.7 billion won and operating profit of 41.2 billion won thanks to higher domestic and overseas product sales and a recovery in selling prices.
By business institutional sector at HD Korea Shipbuilding & Offshore Engineering, the shipbuilding institutional sector saw continued productivity gains through higher construction volumes, a larger share of high-priced ships in sales, and process efficiencies, with revenue up 13.4% to 25.0365 trillion won and operating profit up 119.9% to 3.3149 trillion won.
The engine and machinery institutional sector also maintained strong results, with revenue of 4.2859 trillion won and operating profit of 774.6 billion won, driven by higher sales of marine engines, a greater share of eco-friendly high value-added engines, and improved performance in the engine parts institutional sector.
The offshore plant institutional sector recorded revenue of 1.2436 trillion won as work progressed on existing projects, and swung to an operating profit of 137.9 billion won from a loss a year earlier.
An HD Korea Shipbuilding & Offshore Engineering official said, "Solid results are continuing across affiliates such as shipbuilding and engines based on competitiveness in each business field," and added, "We will enhance profitability through a selective order strategy based on a stable order backlog."