KB News Desk
HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company for HD Hyundai’s shipbuilding businesses, said Wednesday its second-quarter operating profit jumped 72.5 percent from a year earlier driven by expanded sales of high-priced vessels, including liquefied natural gas carriers.
For the April-June period, HD KSOE posted an operating profit of 1.65 trillion won ($1.14 billion), while revenue rose 20.2 percent to 8.93 trillion won.
HD KSOE attributed the earnings improvement to increased production efficiency and higher-priced vessels accounting for a larger share of revenue.
Breaking it down, HD Hyundai Heavy Industries, the group’s largest shipbuilding affiliate, posted revenue of 6.33 trillion won and an operating profit of 1.04 trillion won, up 52.7 percent and 120.6 percent, respectively, on-year.
HD Hyundai Samho posted revenue of 2.37 trillion won, up 11.9 percent, while its operating profit increased 43.7 percent to 534.1 billion won.
In the marine engine business, HD Hyundai Marine Engine recorded revenue of 128.1 billion won and an operating profit of 31.3 billion won, increases of 29.1 percent and 79.2 percent, respectively.
HD Hyundai Energy Solutions, the group’s solar power affiliate, posted revenue of 165 billion won and an operating profit of 36.1 billion won. The figures were up 23.4 percent and 139.8 percent, respectively, helped by increased overseas shipments and higher selling prices.
“Earnings continue to improve on the back of efforts to enhance productivity and an increase in revenue from high-priced vessels,” an HD KSOE official said. “We will maintain our selective ordering strategy focused on profitability as demand continues for a range of vessels, including LNG carriers, container ships and tankers.”
