HD Korea Shipbuilding’s Q3 OP soars 477.4% on industry boom

(HD Korea Shipbuilding & Offshore Engineering)

HD Korea Shipbuilding & Offshore Engineering Co. announced strong third-quarter earnings, well above market expectations, buoyed by a boom in the shipbuilding industry.

HD Korea Shipbuilding announced on Thursday that it posted 6.25 trillion won ($4.54 billion) in sales in the third quarter, up 24.6 percent from the same period a year ago. Operating profit stood at 398.4 billion won, up 477.4 percent during the same period.

The company‘s third-quarter earnings were above the market consensus compiled by FnGuide, which projected 6.07 trillion won in sales and 357.7 billion won in operating profit.

HD Korea Shipbuilding attributed its strong performance to its shipbuilding business, where sales rose 28.4 percent year-on-year in the third quarter.

The company cited a higher proportion of high-value ships and productivity improvements as key growth drivers.

Its subsidiary HD Hyundai Heavy Industries Co. saw its sales jump by 26.5 percent to 3.61 trillion won and operating profit increase by a whopping 1,497.7 percent to 206.1 billion won.

The figures also beat FnGuide’s forecasts of 3.51 trillion won in sales and 181.5 billion won in operating profit.

Another subsidiary, HD Hyundai Samho Co. also saw its sales jump by 24.2 percent year-on-year to 1.64 trillion won and operating profit increase by 138.1 percent to 177.6 billion won.

HD Hyundai Mipo Co. recorded an 8.4 percent increase in sales to 1.08 trillion won. It also managed to swing to an operating profit of 35.2 billion won in the third quarter.

In the engine and machinery segment, sales increased 44.3 percent on year to 865 billion won, thanks to increased order volume and the inclusion of HD-Hyundai Marine Engine Co.

HD-Hyundai Marine Engine posted 52.7 billion won in sales and 5.4 billion won in operating profit.