Shipbuilding woes continued to put a significant amount of pressure on South Korea’a Hyundai Heavy Industries (HHI), as the shipbuilder saw a 49.7 percent drop in its net income during the second quarter of 2017.
HHI delivered a net income of KRW 69.2 billion (USD 61.6 million) for the quarter ended June 30, down from KRW 137.5 billion (USD 122.5 million) seen in the same three-month period in 2016, the company said in a stock exchange filing.
Operating profit was also down to KRW 151.7 billion from KRW 175.7 billion, representing a decrease of 13.7 percent, while the shipbuilder’s sales plunged by 23.8 percent to KRW 4.62 trillion from KRW 6.07 trillion.
On the back of a slump in the shipbuilding industry, on July 30 HHI clinched a USD 600 million contract to build up to eight 84,000 cbm very large gas carriers (VLGCs) for the oil trading company Vitol, Reuters said.
The deal includes two firm liquefied petroleum gas (LPG) tanker orders and an option for six more vessels of the same type. To be built in Ulsan, the new LPG tankers are scheduled to be delivered to their owner in the first half of 2019.
The shipbuilder earlier informed that it secured KRW 1 trillion by late July as a part of its KRW 3.5 trillion management improvement plan, which HHI has been implementing since June 2016 in an effort to improve its balance sheet.
In the second half of 2017, the company continued to pursue its focus on core businesses by liquidating poor performing overseas offices and incorporate firms, and selling non-core assets including.