News and Updates on HD Hyundai
HHI Holdings Reports 2018 Consolidated Financial Results
Hyundai Heavy Industries (HHI) Holdings released on Thursday its consolidated financial results for 2018, highlighted by sales of KRW 27.2636 trillion and operating income of KRW 868.6 billion. For the fourth-quarter, sales were at KRW 7.4351 trillion, but operating income recorded a negative figure of KRW 156.7 billion in losses.
Buoyed by the earnings momentum of major subsidiaries, the group’s fourth-quarter sales rose by 12.6% from KRW 6.6024 trillion in the third quarter. This is thanks in large part to a boost in Hyundai Oilbank’s sales as the refinery was brought back to full operation following the completion of a periodic maintenance and repair of the facilities as well as sales growths in the holding company’s robot business division and in Hyundai Electric’s Information and Communication Technology (ICT) division.
As for the fourth quarter’s operating income, Hyundai Electric moved into the black, but plummeting global oil prices helped drive Hyundai Oilbank’s results into the red: due to inventory losses, the refiner reported operating losses of KRW 175.3 billion.
HHI also released its consolidated financial results for the fourth quarter of 2018. Sales recorded KRW 3.711 trillion, a 14.5% quarter-on-quarter growth, which was driven by a surge in the volume of shipbuilding orders received. Its shipbuilding and engine divisions witnessed a strong earnings momentum, but operating income turned negative with KRW 203 billion in losses.
“We have been approached by many clients interested in placing shipbuilding orders from the beginning of the new year, which is raising the expectations for continued market recovery this year,” said a source at HHI. “Focusing more on securing orders for high value-added vessels such as LNG tankers based on our technological advancement, we will do our utmost to achieve an improved level of profitability this year.”
The shipbuilding business of HHI Group has been serving as a driving force behind the ongoing market recovery, receiving orders to build a total of 163 vessels valued at USD 14 billion last year, which exceeded its annual target of USD 13.2 billion.