HD Hyundai Reports Record Profits Amid Shipbuilding Boom
HD Hyundai has announced a remarkable financial performance for the past year, driven by a surge in shipbuilding and power equipment sectors. The company’s operating profit soared to over 6 trillion won, marking a 104.5% increase from the previous year. This growth was largely attributed to the success of its flagship affiliate, HD Korea Shipbuilding & Offshore Engineering, and the expansion of HD Hyundai Electric.
Significant Growth Across Key Sectors
On March 12, HD Hyundai revealed that its consolidated operating profit reached 6.0996 trillion won, with total revenue climbing 5.2% to 71.2594 trillion won. The shipbuilding and offshore sector, led by HD Korea Shipbuilding & Offshore Engineering, reported impressive figures, with revenue hitting 29.9332 trillion won and operating profit soaring by 172.3% to 3.9045 trillion won. This remarkable growth is attributed to an increase in orders for high value-added ships and improved production efficiency.
In addition, HD Hyundai Heavy Industries, a subsidiary of HD Korea Shipbuilding, reported revenue of 17.5806 trillion won and an operating profit of 2.0375 trillion won. Meanwhile, HD Hyundai Samho contributed revenue of 8.0714 trillion won and an operating profit of 1.3628 trillion won. The power equipment sector also saw significant gains, with HD Hyundai Electric achieving revenue of 4.0795 trillion won, a 22.8% increase, and an operating profit of 995.3 billion won, up 48.8%. The growth in this sector is largely due to the rising demand from the artificial intelligence industry and increased global investments in power infrastructure.
Strategic Focus on Efficiency and Market Expansion
Despite a decline in revenue, HD Hyundai Oilbank managed to maintain profitability, reporting an 8% drop in revenue to 28.0249 trillion won but an 83.7% increase in operating profit to 474 billion won, thanks to improved refining margins. The company plans to adapt to external market changes by diversifying its crude oil sourcing and optimizing its processes.
In the construction equipment sector, HD Hyundai XiteSolution reported revenue of 8.2367 trillion won and an operating profit of 467.4 billion won, reflecting a 6.0% and 8.1% increase, respectively. The company aims to diversify its revenue streams by focusing on high-growth potential areas such as additive manufacturing and compact equipment. Additionally, HD Hyundai Marine Solution, specializing in ship maintenance, recorded revenue of 1.9827 trillion won, up 13.6%, and an operating profit of 350.1 billion won, up 28.9%, driven by growth in its core parts service and digital solutions business.
As HD Hyundai navigates a volatile external environment, company officials emphasize a commitment to enhancing performance stability through profitability-focused operations. They plan to secure high-margin orders in the shipbuilding and power equipment sectors while improving operational efficiency in refining and construction equipment sectors to align with market conditions.
