Power equipment maker BHI records significant sales growth

[Courtesy of BHI]

South Korean power equipment supplier BHI Co. reported an 86.4 percent on-year surge in consolidated operating profit that hit 15.1 billion won ($11.3 million), according to an announcement on Monday. The company recorded a revenue of 367.4 billion won, up 11.3 percent, while turning a net profit of 4.9 billion won.

BHI attributes the robust financial results to its revenue recognition from large-scale projects secured over the past two years. The resolution of raw material price hikes from contracts awarded before 2021 also positively impacted the company’s financial performance.

The global inflationary pressures that began in the second half of 2021 posed challenges for many Korean power equipment firms, but BHI’s solid growth trajectory in 2023 is expected to continue into 2024. As of the fourth quarter of 2023, BHI’s order backlog stood at around 700 billion won and the company also successfully lowered its debt ratio significantly compared to the previous year, laying the foundation for maximizing its growth momentum.

Notably, BHI anticipates a boost in sales with the initiation of orders for the ‘Balance of Plant’ (BOP) facilities for the Shin Hanul 3 and 4 nuclear reactors later in 2024. BHI possesses a diverse portfolio, including containment liner plates, stainless steel liners, surface condensers, and various equipment for BOP installations.