Seoul: HD Korea Shipbuilding and Offshore Engineering Co. (HD KSOE) announced a 25 percent increase in net profit for the second quarter, driven by heightened sales and strong demand for high-value vessels. The company's net profit for the April to June period reached 447.1 billion won (US$321.1 million) on a consolidated basis, up from 357.8 billion won in the same period last year, as reported in a regulatory filing.
According to Yonhap News Agency, HD KSOE's operating profit surged by 153.3 percent year-on-year to 953.6 billion won, while sales grew by 12.3 percent to 7.42 trillion won. The operating profit exceeded average market expectations by 3.9 percent, as per a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency. However, the estimate for net profit was not provided.
HD KSOE attributed its strong financial performance to the rising demand for premium ships and enhanced productivity. In the shipbuilding division, the operating profit more than doubled to 805.6 billion won, with sales rising by 9.3 percent to 6.25 trillion won, largely due to increased construction volume and the sale of higher-priced ships.
The engine and machinery division also reported significant gains, with an operating profit of 201.1 billion won, marking a 120.7 percent increase, while sales climbed by 29.6 percent to 774 billion won. In the offshore and plant division, sales amounted to 247.9 billion won, and the operating profit totaled 37.5 billion won.
As a subholding company of the conglomerate HD Hyundai, which is involved in shipbuilding, oil refining, and machinery, HD KSOE oversees three domestic units: HD Hyundai Heavy Industries Co., Hyundai Mipo Dockyard Co., and Hyundai Samho Heavy Industries Co.