HD Hyundai(267250), buoyed by improved results across key businesses including shipbuilding, refining, construction equipment, and power equipment, posted the highest quarterly operating profit since shifting to a holding company structure in 2017.
HD Hyundai said on the 31st that under consolidation in the second quarter this year, it posted revenue of 22.4094 trillion won and operating profit of 4.1246 trillion won. Compared with a year earlier, revenue rose 30.2% and operating profit jumped 262.2%. Versus the previous quarter, revenue increased 14.3% and operating profit climbed 45.5%.
It also beat market expectations. Second-quarter revenue and operating profit exceeded the securities consensus of 20.013 trillion won and 2.2197 trillion won compiled by FnGuide by 12% and 85.8%, respectively. Net profit was 3.1732 trillion won, up 550.2% from a year earlier.
In the shipbuilding and offshore business, HD Korea Shipbuilding & Offshore Engineering, driven by productivity gains and increased sales of higher-margin vessels, posted revenue of 8.927 trillion won and operating profit of 1.6451 trillion won. The figures were up 20.2% and 72.5%, respectively, from a year earlier. HD Korea Shipbuilding & Offshore Engineering plans to continue selective orders centered on eco-friendly ships to boost profitability.
HD Hyndai Marine Solution recorded revenue of 580.4 billion won and operating profit of 97.6 billion won as its aftermarket (AM) business providing ship parts and services, along with green retrofits and digital solutions, grew evenly. Both were up 24.1% and 17.6%, respectively, from a year earlier.
In the construction equipment business, HD Hyundai XiteSolution posted revenue of 2.5235 trillion won and operating profit of 272 billion won, supported by a recovery in global markets, increased sales of new excavators, and higher revenue from industrial and defense engines. Compared with a year earlier, revenue rose 17.9% and operating profit increased 79.6%.
In the energy business, HD Hyundai Oilbank recorded revenue of 9.4774 trillion won and operating profit of 1.8241 trillion won. Revenue increased 44.9% from a year earlier, and operating profit swung to a profit. Amid continued volatility in global oil prices and uncertainty in crude supply, improved profitability in base oil and petrochemicals supported the results.
HD Hyundai Electric posted revenue of 1.1418 trillion won and operating profit of 287 billion won on the back of higher sales in the power distribution business and improved profitability in overseas markets. Both rose 26% and 37.3%, respectively, from a year earlier.
Cumulative first-half revenue came to 42.0113 trillion won, with operating profit of 6.9594 trillion won. Compared with a year earlier, revenue rose 22.5% and operating profit increased 187%.
An HD Hyundai official said, "In the second quarter, we achieved improved results across all business areas, including shipbuilding, construction equipment, refining, and power equipment, allowing us to further solidify our business structure," adding, "We will focus on securing profitability by expanding selective orders centered on high-value-added vessels, cultivating new markets, and improving our product mix."