(LEAD) HD KSOE’s Q2 net profit up 25 pct on strong ship sales

SEOUL, July 31 (Yonhap) — HD Korea Shipbuilding & Offshore Engineering Co. (HD KSOE) announced a significant 25% increase in net profit for the second quarter of 2023, driven by rising sales and strong demand for high-value vessels. The company reported a net profit of 447.1 billion won (approximately US$321.1 million) for the April-June period, up from 357.8 billion won in the same quarter last year. This robust performance reflects the company’s strategic focus on premium ship production and enhanced operational efficiency.

Strong Financial Performance Across Divisions

HD KSOE’s operating profit soared by an impressive 153.3% year-on-year, reaching 953.6 billion won, while total sales climbed 12.3% to 7.42 trillion won. Notably, the operating profit exceeded market expectations, surpassing the average estimate by 3.9%, according to a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency. The company attributed its strong earnings to a surge in demand for premium ships and improved productivity across its operations.

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In the shipbuilding division, operating profit more than doubled to 805.6 billion won, with sales increasing by 9.3% to 6.25 trillion won. This growth was fueled by a higher construction volume and the sale of more expensive vessels. Meanwhile, the engine and machinery division also performed well, posting an operating profit of 201.1 billion won, a remarkable 120.7% increase, alongside a 29.6% rise in sales to 774 billion won. The offshore and plant division reported sales of 247.9 billion won, with an operating profit of 37.5 billion won, contributing to the overall positive financial results.

About HD Korea Shipbuilding

HD KSOE operates as a subholding company within the larger HD Hyundai conglomerate, which encompasses shipbuilding, oil refining, and machinery sectors. The company oversees three domestic units: HD Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co., and Hyundai Samho Heavy Industries Co. With its focus on innovation and premium products, HD KSOE is well-positioned to capitalize on the growing global demand for advanced maritime technology, including its recent developments in nuclear-powered container ships.