Seoul: HD Korea Shipbuilding and Offshore Engineering Co. (HD KSOE) announced on Thursday that its net income more than tripled in the first quarter from the previous year, driven by increased sales and strong demand for high-value vessels.
According to Yonhap News Agency, the consolidated net profit of South Korea's leading shipyard reached 611.6 billion won (US$427.8 million) during the January-March period, a significant rise from 193.3 billion won recorded a year earlier, as per the company's regulatory filing. The company's operating income saw a remarkable increase of 436.3 percent year-on-year, reaching 859.2 billion won, while sales rose by 22.8 percent to 6.77 trillion won.
HD KSOE credited its strong financial performance to the rising demand for premium ships and enhanced productivity. The main shipbuilding sector's revenue climbed 22.6 percent year-on-year to approximately 5.8 trillion won in sales during the three-month period, with operating profit tripling to 781.4 billion won.
The offshore plant division experienced a significant growth, with sales surging by about 43.8 percent year-on-year to 161.3 billion won, and achieving an operating profit of 6.6 trillion won. Meanwhile, the engine-machinery segment reported sales of 667.2 billion won, marking a 48.7 percent increase year-on-year, and an operating profit of 154.3 billion won, up 103.3 percent.
HD KSOE is a subholding company of HD Hyundai, a conglomerate involved in shipbuilding, oil refining, and machinery. The company oversees three domestic units: HD Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co., and Hyundai Samho Heavy Industries Co.