HD Korea Shipbuilding & Offshore Engineering (HD KSOE), the intermediate holding company of HD Hyundai Group’s shipbuilding business, achieved profitability in the first quarter of 2024. This is the company’s fourth consecutive quarter of profitability since the second quarter of 2023.
HD KSOE recently announced that it achieved operating revenue of KRW 5.5156 trillion ( about $3.991 billion) in the first quarter of 2024, an increase of 13.9% year-on-year; realized a consolidated operating profit of KRW 160.2 billion (about $116 million), compared to KRW -19 billion (about $-13.74 million) a year ago; and achieved a net profit of KRW 193.3 billion (about $140 million).
Divided into subsidiaries, HD Hyundai Heavy Industries achieved an operating income of 2.9877 trillion won in the first quarter of this year, up 13.5% year-on-year; made operating profit of 21.3 billion won; and achieved a net profit of 28.6 billion won.
HD Hyundai Mipo’s operating income in the first quarter of this year increased by 10% to KRW 1.5 trillion; operating loss of KRW 11 billion was reduced compared to the same period last year (operating loss of KRW 27.4 billion); and net profit of KRW 2.1 billion was achieved.
HD Hyundai Samho had the biggest increase in performance, achieving an operating income of 1.756 trillion won in the first quarter of this year, up 22.7%, and an operating profit of 186.4 billion won, up 223.6%.
By different divisions, the shipbuilding division achieved an operating income of 4.875 trillion won, up 19.7%, and an operating profit of 254.4 billion won, up 186.8%, due to the increase in shipbuilding volume and ship prices.
As environmental regulations continued to drive sales of environmentally friendly marine engines, the Engine & Machinery Business Division achieved operating income of KRW 764.0 billion, up 75.9% year-on-year, while operating profit reached KRW 75.9 billion, up 128.6% year-on-year.
However, the Offshore Engineering division posted an operating loss of 77.6 billion won due to one-time expense charges.
HD KSOE related personnel said, “We expect a solid performance trend in the second half of the year and will continue to push forward with our order selection strategy that focuses on high-value-added ships.”
So far this year, HD KSOE has taken orders for 90 new vessels valued at $10.32 billion, achieving 76.4 percent of its annual order target of $13.5 billion.