Hyundai Heavy Industries has banked stronger than forecast earnings in its first quarter under a new umbrella.
The Seoul-listed company today wheeled out a second quarter profit under the new name of Korea Shipbuilding & Offshore Engineering, which reflects its pending merger with DSME.
Korea Shipbuilding posted the numbers alongside a positive demand outlook for new tankers and LNG carriers, two major areas of strength for both sides of the combined business.
It reported a KRW 55.4bn ($46.9m) operating profit for the three months to the end of June, well ahead of the KRW 7.64bn forecast by a consensus which contained a wide range of projections.
Contained in the numbers were a KRW 133.7bn profit from its shipbuilding division, alongside losses from both offshore activities and its plant machinery arm.
A merger of Korean’s two largest shipbuilders has unfolded this year and is expected to lead to a rise in newbuilding prices.
While Korea has pushed the deal to help its yards compete with Chinese rivals, Beijing has responded with plans to combine its two major state—backed shipbuilding groups.
