Hyundai Heavy Sails Back to Profit in Q1

 

This represents a surge of 90% from the previous corresponding quarter. However, sales fell 1.9 percent to 10.76 trillion won.

 

HHI mainly attributes the whooping quarterly operating profit increase to 127.1 billion won operating profits from HHI’s Shipbuilding Division which is 251% up from the first three months last year. 

 

The strong earnings of shipbuilding business were attributable to an increased building volume of high value-added ships that HHI has competitive edge on, stabilization of manufacturing processes, and cost reduction efforts. 

 

Offshore & Engineering Division and Engine & Machinery Division post 94 billion won of profits thanks to an optimized operation of HHI’s Offshore Yard and material cost cut efforts for engine parts while Electro & Electric Systems, Construction Equipment and Robotics Division reported 107.6 billion won of profits with continued efforts to reduce material costs.

 

Hyundai Oilbank and other affiliates also played a role in reporting strong earnings with 350 billion won income even with a drop in refining margins and sales.

 

An HHI official said, “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.” 

 

Meanwhile, HHI Group netted 39 ships worth $2.3 billion in the first four months this year, which is its largest ship orders for the comparable period in three years.

 

Despite a dearth of new orders in the global shipbuilding market, HHI Group was capable of winning the huge orders on the back of its competitive edge on eco-friendly shipbuilding capabilities and healthier fiscal soundness over its competitors.