HD Hyundai Samho, a subsidiary of HD Hyundai’s shipbuilding division, has reported a remarkable operating profit of 723.6 billion won for the last year, more than doubling the previous year’s 301.7 billion won. This significant financial achievement was announced by HD Korea Shipbuilding & Offshore Engineering on Jan. 16 through a disclosure. The announcement highlighted a 139.8% increase in operating profit compared to the previous year.
The company’s sales also saw a substantial rise, amounting to 7.031 trillion won, a 17.5% increase from the previous year’s 5.9587 trillion won. With an operating profit margin of approximately 10.4%, HD Hyundai Samho has outperformed other large shipbuilders, whose profit margins typically range between 3-5%. This exceptional performance is primarily attributed to the company’s strategic focus on high-value-added ships, such as Liquefied Natural Gas (LNG) carriers, and the maximization of production efficiency through the utilization of the latest docks and facilities.
An industry insider commented on the company’s future prospects, stating, “HD Hyundai Samho is expected to continue expanding its performance as about 80% of the volume to be recognized as sales in 2025 will be high-profit ships such as LNG carriers and Liquefied Petroleum Gas (LPG) carriers.” This optimistic outlook is supported by the company’s robust order portfolio, which is heavily centered on high-profit ships.
The resurgence of the shipbuilding industry’s boom this year has been a significant factor in HD Hyundai Samho’s success. However, the company’s ability to achieve an unusually high operating profit margin sets it apart from its competitors. The focus on high-value-added ships, such as LNG carriers, has been a key driver of this success. LNG carriers are specialized ships designed to transport liquefied natural gas at cryogenic temperatures, and their high value is due to their complex engineering and the increasing global demand for cleaner energy sources.
Source: Business Korea
