In a regulatory filing on Thursday, the company reported consolidated first-quarter revenue of 8.1409 trillion won and operating profit of 1.3560 trillion won. That was up 20.2% and 57.8%, respectively, from a year earlier.
Despite fewer operating days due to seasonal factors, revenue and profitability rose across all business lines as the share of high-margin eco-friendly ships increased, productivity improved and offshore earnings strengthened, the company said.
Shipbuilding led the gains. Integrated HD Hyundai Heavy Industries, launched through a merger with HD Hyundai Mipo on Dec. 1 last year, posted revenue of 5.9163 trillion won and operating profit of 905.4 billion won. In the first quarter of last year, HD Hyundai Heavy Industries reported revenue of 3.8225 trillion won and operating profit of 433.7 billion won. HD Hyundai Samho reported revenue of 2.1245 trillion won and operating profit of 395.2 billion won, each up 8% from a year earlier.
HD Hyundai Marine Engine said revenue and profit rose on higher engine selling prices, increased deliveries and stronger parts sales. It posted revenue of 133.5 billion won and operating profit of 32.6 billion won, up 60.8% and 216.5%, respectively, from a year earlier.
HD Hyundai Energy Solutions reported revenue of 159.9 billion won, up 87.6% on higher module sales at home and abroad and price increases. Operating profit was 29.0 billion won, returning to the black.
By segment, the shipbuilding division posted revenue of 6.6963 trillion won and operating profit of 1.1107 trillion won, up 14.6% and 42.1% from a year earlier on higher productivity and an improved product mix.
The engine and machinery division reported revenue of 717.0 billion won and operating profit of 218.1 billion won, up 7.5% and 41.3%, respectively, as tighter global environmental rules boosted demand for dual-fuel engines.
The offshore plant division posted revenue of 457.8 billion won and operating profit of 86.6 billion won, up 183.8% and 1212.1%, respectively, on higher project progress-based revenue recognition and cost cuts.
An HD Korea Shipbuilding & Offshore Engineering official said newbuilding orders have continued, led by large tankers, with orders for gas carriers and container ships also steady. The official said bidding for major LNG projects in the United States is expected to ramp up in the second half, likely expanding demand for LNG carriers, and the company will continue selective orders focused on high value-added ships.
The company said it has been winning orders for high value-added vessels since the start of the year. It recently won an order from KSS Line for three very large gas carriers, or VLGCs, worth a combined 504.8 billion won, bringing year-to-date orders to 86 ships totaling $9.35 billion (about 13.76 trillion won).
* This article has been translated by AI.
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