On August 14, South Korea’s DH Shipbuilding (formerly Daehan Shipbuilding) announced its second-quarter results this year. During the reporting period, DH Shipbuilding achieved consolidated operating income of 296 billion won (approximately US$213 million), a year-on-year increase of 16.7%; and achieved operating profit of 62.5 billion won (approximately US$45 million), a year-on-year increase of 84.4%.
In the first half of this year, DH Shipbuilding achieved cumulative operating revenue of 603.7 billion won (approximately US$435 million) and operating profit of 132.2 billion won (approximately US$95 million), with an operating profit margin of 21.9%. DH Shipbuilding’s stable profitability this year is not simply a result of an improvement in the industry’s economic climate, but also the result of structural improvements over the past three years.
Since being acquired by a consortium led by Korean private equity fund company KH Investment Group (KHI) in 2022, DH Shipbuilding has achieved the dual goals of increasing operating income and profitability by implementing an order strategy centered on high-value-added ships, internalizing external manufacturing segments, maximizing equipment operating efficiency, and refining cost management.
In the first half of this year, DH Shipbuilding delivered a steady stream of major ships at a rate of one per month. In the second half of the year, the company will officially commence construction of high-value-added ships, such as tankers, and further enhance production efficiency through the continuous construction of major ships. DH Shipbuilding anticipates that if this trend continues, its performance will remain solid in the second half of the year.
A DH Shipbuilding representative said, “The company maintained its industry-leading operating profit margin in the second quarter. We will maintain this level steadily to establish our position as a shipbuilding company with solid competitiveness in the global market.”
DH Shipbuilding announced its IPO in June of this year and officially listed on the Korea Composite Stock Price Index on August 1st. The IPO price was set at 50,000 won per share, with an estimated post-IPO valuation of 1.9263 trillion won (approximately US$1.4 billion).
According to information, DH Shipbuilding mainly builds medium-sized ships such as Capesize bulk carriers, Newcastlemax bulk carriers, Aframax tankers and product tankers.
This year, DH Shipbuilding received an order from Greek shipping company Sun Enterprises for two 158,000-dwt Suezmax tankers worth approximately US$180 million. The new buildings will be dual-fueled with liquefied natural gas (LNG) and equipped with scrubbers. Delivery is expected in the first quarter of 2027.