Three Major Shipbuilders Post Combined 2.7T Won Operating Profit
HD Korea Shipbuilding & Offshore Engineering, the mid-tier holding company of HD Hyundai's shipbuilding and marine division, recorded an operating profit of 1.6451 trillion Korean won in the second quarter (April-June) of this year, marking the highest quarterly performance in its history. The combined operating profit of the three major domestic shipbuilders -- Hanwha Ocean and Samsung Heavy Industries, which announced their results earlier -- reached 2.7062 trillion Korean won.
On the 29th, HD Korea Shipbuilding & Offshore Engineering disclosed that it recorded sales of 8.927 trillion Korean won and an operating profit of 1.6451 trillion Korean won for the second quarter on a consolidated basis. This represents increases of 20.2% and 72.5% respectively compared to the same period last year. It also surpassed the previous quarterly record operating profit of 1.356 trillion Korean won set in the first quarter, achieving this in just three months. The operating profit margin rose to 18.4%. HD Hyundai Heavy Industries, a shipbuilding subsidiary, recorded an operating profit of 1.0399 trillion Korean won, and HD Hyundai Samho recorded 534.1 billion Korean won.
Hanwha Ocean also announced sales of 5.4332 trillion Korean won and an operating profit of 736.1 billion Korean won for the second quarter. The operating profit increased by 98% compared to the same period last year, marking the highest since its establishment. Even when including the period when it was Daewoo Shipbuilding & Marine Engineering before being integrated into the Hanwha Group, this remains the highest ever. Samsung Heavy Industries also achieved sales of 3.2307 trillion Korean won and an operating profit of 325 billion Korean won. This represents increases of 20.4% and 58.7% respectively compared to the same period last year. All three companies recorded double-digit operating profit margins.
The surge in performance was driven by the full reflection of high-value-added ships, such as LNG carriers and container ships, which were ordered after a sharp rise in ship prices several years ago. Increased production volume and stabilized processes have boosted productivity, while a selective bidding strategy avoiding low-price orders has enhanced profitability. The weak won and expanded sales of ship engines also contributed. A source from the shipbuilding industry stated, "The shipbuilding industry's 'supercycle' has entered a phase where it is transitioning from order backlogs to actual profits."
