An aerial view of HD Hyundai Heavy Industries' shipyard in Ulsan. [HD Hyundai]
An aerial view of HD Hyundai Heavy Industries' shipyard in Ulsan. [HD Hyundai]

HD Korea Shipbuilding & Offshore Engineering posted consolidated sales of 8.93 trillion won ($6.09 billion) and operating profit of 1.65 trillion won in the second quarter, the company announced Wednesday. Sales rose 20.2 percent and operating profit surged 72.5 percent from the same period last year.

The earnings growth was driven by improved productivity, a higher share of revenue from premium-priced vessels and stronger profitability through selective order intake.

Shipbuilding affiliate HD Hyundai Heavy Industries recorded sales of 6.33 trillion won and operating profit of 1.04 trillion won, up 52.7 percent and 120.6 percent, respectively, from a year earlier. Integration synergies with HD Hyundai Mipo contributed positively to the results. HD Hyundai Samho posted sales of 2.37 trillion won and operating profit of 534.1 billion won, up 11.9 percent and 43.7 percent, respectively, from the second quarter of last year.

HD Hyundai Marine Engine, the group's marine engine affiliate, reported operating profit of 31.3 billion won, a 79.2 percent increase from the same period last year. Sales rose 29.1 percent to 128.1 billion won over the same period.

HD Hyundai Energy Solutions, a solar energy solutions specialist, posted sales of 165 billion won and operating profit of 36.1 billion won, up 23.4 percent and 139.8 percent, respectively, from a year earlier. The strong performance was driven by higher overseas sales volumes and price increases.

By business segment, the shipbuilding division's operating profit rose 73.6 percent year-on-year to 1.4 trillion won, while sales climbed 19.1 percent to 7.45 trillion won.

The engine and machinery segment saw sales dip 1.8 percent year-on-year to 760.2 billion won, but operating profit grew 33.6 percent to 268.6 billion won, as demand for high-value eco-friendly engines improved margins. The offshore plant segment posted sales of 377.1 billion won and operating profit of 60.1 billion won, up 52.1 percent and 60.3 percent, respectively, from a year earlier.

"Earnings have continued to improve on the back of productivity gains and a growing share of revenue from high-priced vessels," a company official said. "With orders for a wide range of vessel types — including LNG carriers, container ships and tankers — continuing to come in, we plan to maintain our profitability-focused selective order strategy."


yeongdai@heraldcorp.com