HD Hyundai third-quarter operating profit jumps 71.5 percent on shipbuilding strength

HD Hyundai said Wednesday its third-quarter operating profit rose 71.5 percent from a year earlier to 2.92 trillion won ($2.2 billion), helped by firm margins across its shipbuilding, construction-equipment and energy businesses.

Revenue for the quarter reached 22.1 trillion won ($16.7 billion), up 21.2 percent from 18.2 trillion won a year earlier.

The company said seasonal factors reduced the number of working days in the quarter and that currency movements also weighed on results, while profitability held firm in its major shipbuilding, construction-equipment and energy businesses.

The shipbuilding arm drove the quarter. HD Korea Shipbuilding & Offshore Engineering posted 8.29 trillion won ($6.26 billion) in consolidated revenue, up 9.3 percent, and 1.45 trillion won ($1.09 billion) in operating profit, up 37.3 percent from a year earlier. Its cumulative operating profit for the first three quarters reached 4.45 trillion won ($3.36 billion), already above last year's full-year record of 3.9 trillion won ($2.95 billion).

Within that, the shipbuilding division reported 6.84 trillion won ($5.16 billion) in revenue and 1.15 trillion won ($865 million) in operating profit, up 10.3 percent and 32.3 percent respectively, as a greater share of high-value vessels fed through and productivity improved.

At the group's other units, HD Hyundai Heavy Industries posted 5.75 trillion won ($4.34 billion) in revenue and 899 billion won ($679 million) in operating profit, gains of 30.2 percent and 61.3 percent. HD Hyundai Samho reported 2.37 trillion won ($1.79 billion) in revenue and 479 billion won ($362 million) in operating profit, up 20.5 percent and 56.3 percent, helped by a larger share of LNG carriers. HD Hyundai Marine Engine lifted revenue 93.8 percent to 211 billion won ($160 million) and operating profit 197 percent to 60.3 billion won ($45.5 million).

Operating profit fell 29.2 percent from 4.12 trillion won in the previous quarter, when revenue was 22.4 trillion won.

"We will continue our growth trend through sustained productivity improvements and stronger business competitiveness," HD Hyundai said in a release.