HD Korea Shipbuilding & Offshore Engineering, the intermediate holding company of HD Hyundai’s shipbuilding sector, announced on the 31st that it recorded sales of 7.4284 trillion KRW and an operating profit of 953.6 billion KRW in the second quarter on a consolidated basis. This represents an increase of 12.3% and 153.3%, respectively, compared to the same period last year.
HD Korea Shipbuilding & Offshore Engineering explained that growth was seen across all business sectors due to factors such as increased working days and improved productivity, expanded sales proportion of high-priced ships improving profitability, and increased sales in the engine machinery sector.
In terms of business sectors, the shipbuilding sector saw a 9.3% increase in sales and a 104.5% increase in operating profit from the same period last year, recording 6.2549 trillion KRW in sales and 805.6 billion KRW in operating profit, due to increased construction volume and higher ship price sales.
The engine machinery sector achieved sales of 774 billion KRW, up 29.6% from the previous year, thanks to increased demand for dual-fuel engines due to strengthened global environmental regulations and increased delivery volumes. Operating profit increased by 120.7% to 201.1 billion KRW.
The offshore plant sector also saw a 56.9% increase in sales to 247.9 billion KRW and an operating profit of 37.5 billion KRW as major project revenue recognition expanded and profitability improved.
Among affiliates, HD Hyundai Heavy Industries led performance growth with sales of 4.1471 trillion KRW and an operating profit of 471.5 billion KRW. HD Hyundai Samho and HD Hyundai Mipo supported performance with sales of 2.1187 trillion KRW and 1.2345 trillion KRW, and operating profits of 371.7 billion KRW and 89.4 billion KRW, respectively.
HD Hyundai Marine Engine saw sales and operating profit increase by 16.7% and 91.2%, respectively, from the previous year to 99.3 billion KRW and 17.4 billion KRW, due to increased sales proportion of high-value-added engines, higher sales prices, and improved production efficiency.
HD Hyundai Energy Solutions recorded sales of 133.7 billion KRW and an operating profit of 15.1 billion KRW, achieving a turnaround to profitability compared to the previous quarter. This was driven by expanded sales of solar modules in domestic and overseas markets and strong sales of new high-efficiency modules.