HD Hyundai Heavy Industries(329180) surpassed 1 trillion won in quarterly operating profit for the first time, helped by revenue growth from high-priced ships and improved productivity. It is the first record on a standalone basis since HD Korea Shipbuilding & Offshore Engineering was launched.
HD Hyundai Heavy Industries said on the 29th that it posted, on a consolidation basis for the second quarter this year, revenue of 6.3322 trillion won and operating profit of 1.0399 trillion won. Those were up 52.7% and 120.6%, respectively, from a year earlier. Net profit rose 289.8% to 822.1 billion won.
Operating profit beat the securities consensus compiled by FnGuide (997.3 billion won) by 4.3%. Compared with the previous quarter, revenue rose 7% and operating profit increased 14.9%. The operating margin was 16.4%, up 1.1 percentage points from the prior quarter.
It is the first time that quarterly operating profit has exceeded 1 trillion won on a standalone basis since HD Korea Shipbuilding & Offshore Engineering was launched. The year-over-year topline growth also reflected the impact of the merger with HD Hyundai Mipo in Dec. last year. Results for the second quarter last year did not include HD Hyundai Mipo's results before the merger.
Performance growth was led by the shipbuilding and engine and machinery segments. The shipbuilding segment posted revenue of 4.9783 trillion won and operating profit of 851.2 billion won. With more working days and higher productivity, and as the share of revenue from high-priced ships expanded, operating profit increased 19.4% from the previous quarter.
Within the shipbuilding segment, merchant ship revenue was 4.6773 trillion won, and operating profit was 833.2 billion won. The operating margin was 17.8%. The naval vessel segment recorded revenue of 301 billion won and operating profit of 18 billion won.
The engine and machinery segment booked revenue of 952.2 billion won and operating profit of 236.4 billion won. Revenue rose 8.3% from the previous quarter on increased sales volume, higher selling prices, and exchange-rate effects. As the revenue share of high-margin dual-fuel engines held steady, operating profit rose 27.6%, and the operating margin improved to 24.8%.
The offshore plant segment posted revenue of 377.2 billion won and operating profit of 60.1 billion won. Although down from the previous quarter due to differences in project progress, both were up 53.3% and 63.3%, respectively, from a year earlier.
HD Hyundai Heavy Industries' cumulative revenue for the first half of this year came to 12.2485 trillion won, with operating profit at 1.9453 trillion won. Those were up 53.7% and 114.9%, respectively, from a year earlier.