HD Korea Shipbuilding & Offshore Engineering (KSOE) has reported a remarkable operating profit of 859.2 billion won (approximately $598.1 million) for the first quarter of the year, marking an astonishing 436.3 percent increase from 160.2 billion won in the same period last year. This surge in profits has surpassed market expectations, with the company attributing its success to enhanced productivity. Furthermore, KSOE aims to leverage the U.S. strategy to counter China for additional benefits.
In its quarterly report, KSOE announced a revenue of 6.77 trillion won for Q1, reflecting a 22.8 percent increase year-on-year. Notably, this profit represents the company’s eighth consecutive profitable quarter. KSOE acts as the holding entity 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 its subsidiaries, HD Hyundai Heavy Industries excelled, attaining revenue of 3.82 trillion won and operating profit of 433.7 billion won. Meanwhile, HD Hyundai Samho and HD Hyundai Mipo reported revenues of 1.97 trillion won and 1.18 trillion won, respectively. The primary driver behind these impressive financial results has been productivity improvements, which allowed for faster shipbuilding and advanced delivery schedules.
Sung Ki-jong, executive director of investor relations at HD Hyundai Heavy Industries, emphasized that investments in automation and enhanced production processes have led to increased efficiency. This has resulted in early handovers of high-margin ships, thereby boosting overall revenue and profits. Further supporting KSOE’s optimistic outlook is the growing U.S. policy focus on domestic shipbuilding and restrictions on Chinese maritime industries.
The company has reported a significant increase in inquiries for container ships, suggesting a bullish market trend. In response, KSOE plans to propose policy initiatives to strengthen cooperation in the naval defense sector with both Korean and U.S. governments.