HJ Shipbuilding & Construction's Third-Quarter Operating Profit Soars Ninefold Year on Year to 155.4 Billion Won

[Financial News] HJ Shipbuilding & Construction's cumulative operating profit for the first three quarters of this year rose to more than nine times the level of the same period last year, supported by expanded construction of high-value-added vessels. Profitability in the shipbuilding division improved significantly, while the construction division also maintained a profitable footing, supporting overall growth.
HJ Shipbuilding & Construction said on the 13th that, on a consolidated basis, it posted cumulative revenue of 2.0044 trillion won and operating profit of 155.4 billion won for the first three quarters of this year. Those figures were up 46.3% and 836.1%, respectively, from the same period a year earlier. Net income for the period rose about 45-fold, from 2.9 billion won to 130.6 billion won.
The shipbuilding division led the improvement in performance. Its cumulative revenue for the first three quarters rose 88.1% year on year to 1.1297 trillion won, from 600.5 billion won. Operating profit was 149.7 billion won, accounting for about 96% of the company's total operating profit.
An HJ Shipbuilding & Construction official said, "Stable orders and business operations in the construction division, built on a larger share of revenue from high-value-added vessels in the shipbuilding division and various special-purpose ship projects, supported the strong results."
The company said revenue and profitability improved at the same time as construction of eco-friendly, high-value-added container ships gathered pace in its core merchant ship business. It also secured stable earnings from special-purpose ship projects, including maintenance, repair and overhaul (MRO) work on U.S. Navy vessels. Despite lower exchange rates and fewer operating days due to summer vacation and the Chuseok holiday, the company boosted profitability by increasing dock utilization and streamlining production processes.
The construction division also remained profitable. Cumulative revenue for the first three quarters came to 874.2 billion won, and operating profit was 5.6 billion won. This reflected the division's ability to maintain a stable business base centered on its core areas, including public works, civil engineering and housing.
HJ Shipbuilding & Construction plans to selectively pursue orders in areas where it has established competitiveness, including public works and urban redevelopment projects. It also aims to improve profitability in the construction division by strengthening process and cost management and making site operations more efficient.

[email protected] Jung Won-il Reporter