HJ Shipbuilding & Construction said on the 27th that last year it posted revenue of 1.9997 trillion won, operating profit of 67 billion won, and net profit of 51.4 billion won.

Revenue rose 6% from a year earlier, and operating profit and net profit increased 824.8% and 884.6%, respectively. It is the first time in five years that HJ Shipbuilding & Construction’s operating profit has exceeded 50 billion won, since it recorded 51.6 billion won in 2020.

The strong results were led by a revival in the shipbuilding division, one of the company’s two main businesses. Shipbuilding revenue, which had fallen to 18% of total revenue in 2022, surged on an industry rebound to account for about half of last year’s total revenue.

In particular, a selective order strategy drove margin improvement. HJ Shipbuilding & Construction has focused on building high value-added ships that apply eco-friendly technologies, such as methanol-powered container ships, LNG-powered container ships, and LNG bunkering vessels, in step with the International Maritime Organization (IMO)’s tougher carbon-reduction rules.

Stable orders in the defense sector also supported results. HJ Shipbuilding & Construction, leveraging its unrivaled technology, won all orders for 32 new patrol killer experimental boats (PKX-B) and eight landing ship fast-air cushion vehicles (LSF-II) placed by the Navy. At the end of last year, it secured an additional four patrol boats worth 380 billion won, securing more than three years of workload.

The construction division also contributed to improved results by exceeding its annual target with 2.5 trillion won in orders last year.

HJ Shipbuilding & Construction recently signed a Master Ship Repair Agreement (MSRA) with the U.S. Navy, earning eligibility to participate over the next five years in the Navy’s MRO (maintenance, repair and overhaul) projects worth 20 trillion won annually.

An HJ Shipbuilding & Construction official said, “Industry conditions are improving on rising demand for eco-friendly ships, and the improvement trend is expected to continue this year as the U.S. Navy MRO project begins to bear fruit,” adding, “We will focus on strengthening profitability and securing future competitiveness with differentiated technological competitiveness.”
Source: CHOSUNBIZ