Powered by a simultaneous boom in shipbuilding and power equipment, HD Hyundai posted a record performance last year with operating profit exceeding 6 trillion won. Improved profitability at flagship affiliate HD Korea Shipbuilding & Offshore Engineering and growth at HD Hyundai Electric drove the results.

HD Hyundai said on the 12th that, on a consolidation basis, full-year operating profit last year rose 104.5% from a year earlier to 6.0996 trillion won. Revenue for the same period increased 5.2% to 71.2594 trillion won.

By major business, in the shipbuilding and offshore institutional sector, HD Korea Shipbuilding & Offshore Engineering posted revenue of 29.9332 trillion won and operating profit of 3.9045 trillion won. That represents a surge of 17.2% in revenue and 172.3% in operating profit from a year earlier. As orders centered on high value-added ships began to be reflected in earnings and production efficiency improved in tandem, profit expanded significantly.

HD Hyundai Heavy Industries, a subsidiary of HD Korea Shipbuilding & Offshore Engineering, reported revenue of 17.5806 trillion won and operating profit of 2.0375 trillion won, while HD Hyundai Samho posted revenue of 8.0714 trillion won and operating profit of 1.3628 trillion won.

In the power equipment institutional sector, HD Hyundai Electric, helped by the expansion of the artificial intelligence (AI) industry and increased global investment in power infrastructure such as data centers, recorded revenue of 4.0795 trillion won, up 22.8% from a year earlier, and operating profit of 995.3 billion won, up 48.8%. HD Hyundai Electric plans to continue a selective order strategy focused on high value-added projects and to strengthen its lineup of eco-friendly, high-efficiency products to expand market share in Europe and other global markets.

In the energy institutional sector, HD Hyundai Oilbank succeeded in defending profitability despite a decline in revenue. Revenue fell 8% year over year to 28.0249 trillion won due to factors including lower oil prices, but operating profit rose 83.7% to 474 billion won on improved refining margins. HD Hyundai Oilbank plans to proactively respond to external variables such as the reorganization of supply chains in the global refining market by focusing on diversifying crude oil sourcing and optimizing processes.

In the construction equipment institutional sector, HD Hyundai XiteSolution posted revenue of 8.2367 trillion won and operating profit of 467.4 billion won, up 6.0% and 8.1%, respectively, from a year earlier. Expanded sales in emerging markets such as Latin America and Africa, as well as in advanced markets like North America and Europe, proved effective. HD Hyundai XiteSolution plans to diversify revenue sources, including AM, engine, and compact equipment businesses with high growth potential, based on integration synergies and region-specific sales strategies.
HD Hyndai Marine Solution, a specialist in ship maintenance and repair, recorded revenue of 1.9827 trillion won, up 13.6% from a year earlier, and operating profit of 350.1 billion won, up 28.9% from a year earlier, backed by increased revenue in its core parts service business (AM) and growth in its digital solutions business.

Ship engine affiliate HD Hyundai Marine Engine posted revenue of 402.4 billion won and operating profit of 75.9 billion won on increased ship engine volumes and higher revenue in the parts business, while solar affiliate HD Hyundai Energy Solutions recorded revenue of 492.7 billion won and operating profit of 41.2 billion won on increased global sales volume and a recovery in selling prices.

An HD Hyundai official said, “With volatility in the external environment continuing, we will enhance performance stability through profitability-focused operations,” adding, “In the shipbuilding and power equipment institutional sectors, we will continue to secure high-margin orders and drive production efficiency, while in the refining and construction equipment institutional sectors, we will seek to improve performance trends by enhancing operational efficiency in line with market conditions.”
Source: ChosunBiz