HD Hyundai has reported a record-breaking consolidated revenue of 67.7656 trillion won for last year, marking a significant 10.5% increase from the previous year. The company’s operating profit also saw a substantial rise, surging by 46.8% to 2.9832 trillion won. This impressive financial performance underscores HD Hyundai’s strategic focus on eco-friendly technologies and diversification across its various business sectors.
HD Korea Shipbuilding & Offshore Engineering, an intermediate holding company for the group’s shipbuilding division, contributed significantly to this growth. The company reported a 19.9% increase in revenue, reaching 25.5386 trillion won, and an operating profit increase of more than fivefold to 1.4341 trillion won. This surge in profitability was largely driven by the delivery of high-value-added eco-friendly ships, such as LNG carriers, which have been in high demand due to global environmental regulations and the push for greener technologies. “The first bid for the U.S. MRO business will be conducted in February, and we plan to pursue 2 to 3 cases this year,” stated a representative from HD Korea Shipbuilding & Offshore Engineering, highlighting the company’s strategic expansion into the U.S. naval maintenance, repair, and overhaul market.
HD Hyundai Heavy Industries also reported a remarkable fourfold increase in operating profit, reaching 705.2 billion won, thanks to its significant share in the LNG carrier market. Meanwhile, HD Hyundai Electric achieved revenue of 3.3223 trillion won and an operating profit of 669 billion won, driven by the global demand for transformers, particularly due to the spread of artificial intelligence technology.
However, not all sectors experienced growth. HD Hyundai Oilbank faced a challenging year with a nearly 60% decrease in operating profit to 258 billion won, attributed to the downturn in the refining industry. Despite this, an HD Hyundai Oilbank representative expressed optimism, stating, “U.S. tariffs on Canadian crude oil will be a good opportunity for domestic refiners,” suggesting potential benefits from shifts in crude oil supply dynamics.
HD Hyundai Site Solution, operating in the construction machinery sector, also faced declines, with revenue and operating profit dropping by 11.1% and 40.3%, respectively. This was largely due to the impact of the global economic downturn, which has affected demand for construction equipment.
Looking ahead, HD Hyundai is poised to further enhance its performance by expanding its production capacity for 765㎸ ultra-high voltage transformers. This will be achieved through the construction of a new production plant on existing land at its Ulsan site in South Korea and establishing a second plant at its Alabama subsidiary in the U.S. Additionally, HD Hyundai Site Solution plans to strengthen its overseas market strategy by securing potential demand through sales diversification and launching next-generation models.
“In a situation where external uncertainties are deepening, we plan to pursue a profitability-focused strategy across all business areas based on a stable business portfolio this year,” an HD Hyundai representative stated. “As the favorable performance trend in the shipbuilding and power equipment sectors continues, we will continue to grow by developing eco-friendly technologies and maximizing production efficiency.”
Source: Business Korea