HD Hyundai announced on the 6th that its operating profit for 2024 is estimated to be around 3 trillion won, an increase of nearly 50% compared to the previous year. This is due to increased profitability in the institutional sector of shipbuilding and offshore and continued strong performance in the electrical equipment sector.
HD Hyundai stated that its revenue for 2024 is projected to be 67.7656 trillion won, a 10.5% increase compared to the previous year. During the same period, operating profit rose to 2.9832 trillion won, an increase of 46.8%.
Affiliated companies in the institutional sector of shipbuilding and offshore performed exceptionally well. Last year, HD Korea Shipbuilding & Offshore Engineering posted revenue of 25.5386 trillion won, up 19.9%, and operating profit of 1.4341 trillion won, a 408% increase. HD Korea Shipbuilding & Offshore Engineering explained, “The increase in built volume was due to the expansion of orders for high-value-added eco-friendly ships and production efficiencies, along with a selective order strategy focused on profitability, leading to a substantial rise in operating profit.”
HD Hyundai Heavy Industries, a subsidiary of HD Korea Shipbuilding & Offshore Engineering, recorded revenue of 14.4865 trillion won and operating profit of 705.2 billion won. HD Hyundai Samho reported revenue of 7.0031 trillion won and operating profit of 723.6 billion won, while HD Hyundai Mipo recorded revenue of 4.63 trillion won and operating profit of 88.5 billion won.
HD Hyundai Marine Solution achieved revenue of 1.7455 trillion won, a 22% increase compared to the previous year. Operating profit also rose by 34.8% to 271.7 billion won. The company noted, “Strong orders in our core ship parts service business and the expansion of digital control business such as smart ship operation management and automation solutions contributed to good performance.”
HD Hyundai Marine Engine, incorporated into HD Hyundai last year, reported revenue of 315.8 billion won, an increase of 28.9%, and operating profit of 33.2 billion won, a rise of 85.5%. The company explained that the strategy to expand eco-friendly engine products proved effective.
The institutional sector of construction machinery performed relatively poorly. HD Hyundai XiteSolution reported revenue of 7.7731 trillion won, down 11.1% from the previous year. Operating profit also declined by 40.3% to 432.4 billion won. The company stated, “The exceptional boom caused by infrastructure investment in major countries in 2023 had a reverse effect, compounded by the impact of the global economic downturn.” HD Hyundai XiteSolution noted it would secure potential demand through diversification of sales channels and strengthen its efforts to penetrate overseas markets through the launch of next-generation models.
In the energy sector, the electrical equipment subsidiary HD Hyundai Electric performed well. It recorded revenue of 33.223 trillion won and operating profit of 669 billion won last year, an increase of 20.1% compared to the previous year. The company noted that the increase in revenue from electrical equipment was fueled by rising investments in electrical infrastructure, especially in the North American market. They explained, “With the expansion of global data centers and the proliferation of artificial intelligence (AI) technology, the demand for electrical equipment has increased, and we achieved revenue improvement through selective orders.”
HD Hyundai Oilbank recorded revenue of 30.4686 trillion won and operating profit of 258 billion won last year. While revenue increased by 8.4% compared to the previous year, operating profit decreased by 58.2%. The company stated, “We will proactively respond to external variables by diversifying crude oil imports and optimizing processes in line with the rising trend of global oil product demand.”
Source: CHOSUNBIZ
