HD Korea Shipbuilding wins 338 billion won Boryeong coal-yard contract

HD Korea Shipbuilding & Offshore Engineering said Tuesday it has raised the value of a contract with Korea Midland Power for indoor coal storage at the Boryeong thermal power plant to 338 billion won ($249 million), according to a regulatory filing.

The revision lifts the contract from 333 billion won to 8.6 percent of the shipbuilder's 3.92 trillion won ($2.88 billion) in revenue, the filing showed. The work, covering units 1 through 8 of the Boryeong plant in South Chungcheong Province, began on Sept. 2, 2021, and runs through Aug. 31 next year.

HD Korea Shipbuilding reported consolidated second-quarter revenue of 8.93 trillion won ($6.57 billion) and operating profit of 1.65 trillion won ($1.21 billion), gains of 20.2 percent and 72.5 percent from a year earlier. Its shipbuilding subsidiary HD Hyundai Samho posted 2.37 trillion won ($1.75 billion) in revenue and 534 billion won ($393 million) in operating profit, up 11.9 percent and 43.7 percent.

Shipbuilding drove the quarter, with revenue of 7.45 trillion won ($5.48 billion) and operating profit of 1.4 trillion won ($1.03 billion). The engine machinery division posted 760 billion won ($560 million) in revenue and 269 billion won ($198 million) in operating profit, while the offshore plant division recorded 377 billion won ($278 million) in revenue and 60.1 billion won ($44.2 million) in operating profit.

The company attributed the improvement to productivity efforts and growing sales of higher-priced vessels. An HD Korea Shipbuilding official said orders continue across LNG carriers, container ships and tankers, adding that the company will maintain a profitability-focused selective ordering strategy.