On April 24, HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company of HD Hyundai Group’s shipbuilding business, announced that the company achieved operating revenue of 6.7717 trillion won (about US$4.83 billion) in the first quarter of this year, a year-on-year increase of 22.8%; operating profit of 859.2 billion won (about US$610 million), a year-on-year increase of 436.3%; net profit of 611.6 billion won (about US$440 million), a year-on-year increase of 216.4%, marking the eighth consecutive quarter of profitability of HD KSOE since the second quarter of 2023.
HD KSOE attributed the consecutive quarters of profitability to improved productivity, increased drydocking, a higher proportion of high value-added vessel sales, and improved profitability as a result of its order-screening strategy, the company said.
In the shipbuilding business, HD KSOE’s shipbuilding subsidiary HD Hyundai Heavy Industries took the lead with operating revenue of 3.8225 trillion won (about US$2.73 billion) and operating profit of 433.7 billion won (about US$370 million); the performance of its other two subsidiaries, HD Hyundai Samho and HD Hyundai Mipo, also improved, with operating revenues of 1.9664 trillion won (about US$1.40 billion) and 1.1838 trillion won (about US$840 million), respectively, and operating profits of 365.9 billion won (about US$260 million) and 68.5 billion won (about US$48 million), respectively.
In terms of marine engine business, HD Hyundai Marine Engines achieved operating income of 83 billion won (approximately US$59.2 million), a year-on-year increase of 35.3%; operating profit was 10.3 billion won (approximately US$7.35 million), a year-on-year increase of 64.4%. The company fully utilized the synergy effect after joining the HD Hyundai Group last year, and performed strongly against the backdrop of increased engine production and improved production efficiency.
In the first quarter of this year, the performance of HD KSOE’s business units benefited from a good overall business environment. The shipbuilding business achieved cumulative operating revenue of 5.8451 trillion won (approximately US$4.17 billion) and operating profit of 781.4 billion won (approximately US$560 million), up 21.6% and 207.2% year-on-year respectively.
The Engine and Machinery Business achieved operating revenue of 667.2 billion won (approximately US$480 million), a year-on-year increase of 48.7%; operating profit of 154.3 billion won (approximately US$110 million), a year-on-year increase of 103.3%, mainly due to the increase in the proportion of dual-fuel engines, the increase in engine prices and the increase in deliveries in response to stricter environmental regulations.
The offshore engineering business achieved operating revenue of 161.3 billion won (approximately US$120 million), a year-on-year increase of 43.8%; and achieved operating profit of 6.6 billion won (approximately US$4.71 million).
An HD KSOE official said: “The company will lead the future shipbuilding market by promoting digitalization and environmental protection technologies, building smart shipyards, and developing autonomous navigation, SMR and electrification technologies, and will continue to implement order screening strategies to win high value-added ship orders to further enhance profitability.”