Hyundai Heavy Industries swings back to profit in Q1

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PHOTO CREDIT: SHIPS & PORTS archive

Hyundai Heavy Industries (HHI) has made a profit in the first quarter of 2019, reversing from its loss position in the year-ago period.

For the first three months of this year, the South Korean shipyard recorded a profit attributable to controlling interest of KRW2.8bn ($2.53m) as against the loss of KRW136.6bn in the same period of 2018.

First quarter revenue rose by 7.4% year-on-year to KRW3.27trn due mainly to rising newbuilding prices and favourable exchange rates.

“Although uncertainty still exists in the shipbuilding market, expectations for a recovery are rising as environmental regulations have been tightened recently and large-scale LNG projects have been launched. We will focus our capacity on LNG carriers in the future,” HHI stated.

In 2018, HHI suffered a full year loss of KRW656.5bn compared to a narrower loss of KRW 93.4bn in 2017, due to the higher costs of shipbuilding and reduced demand for higher value ships.