HHI Reaping Gains from New Shipbuilding Orders

South Korean shipbuilder Hyundai Heavy Industries (HHI) has reported an operating profit KRW 618.7 billion during the first three months of 2017, representing a jump by 90.3 percent from KRW 325.2 billion seen last year, as the company posted profits for five straight quarters.

The shipbuilder’s net profit reached KRW 462.3 billion, surging by 89 percent from KRW 244.5 billion reported in the period ended March 31, 2016.

Consolidated sales for the period were slightly down to KRW 10.07 trillion, compared to KRW 10.2 trillion reported in the same period a year earlier.

HHI mainly attributed the earnings increase to KRW 127.1 billion of operating profits from its shipbuilding division which is 251% up from the first three months last year.

During the first three months of the year, the shipbuilder reported USD 2.04 billion-worth of newbuilding orders, up by 22.9 percent when compared to the corresponding figures from last year.

The shipbuilding segment booked USD 763 million worth of orders, surging by 226.07 percent against last year’s USD 234 million, HHI said in a report.

However, the company’s offshore and engineering arm saw a 65 percent drop in ordering activity with USD 51 million worth of orders. HHI’s industrial plant and engine and machinery sectors were also hit by a decrease in ordering activity by 50 and 17 percent respectively.

The shipbuilding orders continued pouring in April as well, with 18 new ship orders worth USD 900 million secured during the month.

HHI’s order intake for 2017 stands at USD 2.3 billion, with a total of 39 ships orders, representing the company’s largest ship orders for the comparable period in three years.

“We have been active in improving profitability and fiscal health with preemptive and comprehensive restructuring measures since 2014. With five consecutive quarterly profits, we will redouble our efforts to continue to report stable profits with technology and quality-oriented management,” HHI official said.

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