HD KSOE announced a remarkable 436% increase in profits, with first-quarter revenue reaching 6.77 trillion won and an operating profit of 859.2 billion won. This achievement marks the company’s eighth consecutive quarter of profitability, with a revenue rise of 22.8% compared to the same period in the previous year. HD KSOE serves as the intermediate holding company for HD Hyundai’s shipbuilding and marine operations, which include subsidiaries such as HD Hyundai Heavy Industries, HD Hyundai Samho, and HD Hyundai Mipo. Among the subsidiaries, HD Hyundai Heavy Industries reported the strongest performance, achieving 3.82 trillion won in revenue and 433.7 billion won in operating profit.
HD Hyundai Samho and HD Hyundai Mipo also contributed positively, generating revenues of 1.97 trillion won and 1.18 trillion won, respectively. The increase in profits is primarily attributed to enhanced productivity that has allowed for faster and more efficient shipbuilding. Sung Ki-jong, the executive director of investor relations at HD Hyundai Heavy Industries, emphasized the role of investments in automation and improved operational efficiency, which have led to expedited delivery schedules. Notably, the company advanced the delivery of a vessel due in late November 2027 to August 2027, illustrating the effectiveness of its production strategies.
Moreover, the significant shift toward high-value ship deliveries—80% of HD Hyundai Heavy Industries’ revenue in the first quarter came from vessels ordered in 2022—played a crucial role in bolstering earnings. The Clarkson Report highlighted a steady increase in the newbuild price index, further supporting revenue growth. In light of recent U.S. policies encouraging domestic shipbuilding and countering Chinese maritime influence, HD Hyundai Heavy Industries foresees a rise in inquiries for container ships, significantly increasing by six times compared to last year. The company plans to propose policy changes to both the Korean and U.S. governments aimed at enhancing cooperation in naval defense, reinforcing its strategic position in the industry.