HD Korea Shipbuilding & Offshore Engineering (HD KSOE) is back in the black, posting operating income of KRW 71.2bn ($55.5m) for the second quarter compared with a KRW 265.1bn loss a year earlier.
Net profit for the holding company for Hyundai Heavy Industries, Hyundai Mipo Dockyard and Hyundai Samho Heavy Industries came in at KRW39.4bn between April and June — a big improvement on the KRW 105.6bn loss in the corresponding three months of 2022.
An increase in sales revenue and the construction of high-value-added green ships were said to have helped the turnaround.
HD Hyundai, the parent company of HD KSOE, said revenue for the shipbuilding group reached KRW 5.45trn, an increase of 30.2% from the same period in 2022.
HD KSOE said sales of its offshore plant division increased by almost 48% year over year to KRW278.6bn, while sales for its engine and machinery segment surged by almost 300% to KRW488bn.
The group expects operating profit to continue increasing into the second half due to the construction of high-priced vessels.
Newbuilding prices have steadily increased over the past two years due to strong demand for new vessels and shipping’s fuel transition requirements.
Clarksons Research reported that the price of newbuildings reached 171 points by the end of June, up 6% since the start of the year and up 11% from January 2022.
HD KSOE revealed that it has won orders for 113 vessels and a floating production unit worth $14.73bn so far this year — 93.6% of its annual target of $15.74 bn.
