News and Updates on HD Hyundai
HHI Holdings to Repurchase Shares for Cancellation for 1st Time since Founding
Hyundai Heavy Industries (HHI) Holdings is making all-out efforts to generate greater shareholder value. At the board meeting held on February 6, HHI Holdings resolved to buy back 488,000 of its own shares for cancellation as part of its determined efforts to return more to shareholders. Valued at KRW 129.3 billion, this would account for 3% of the company’s total outstanding shares.
On the same day, HHI Holdings announced its dividend policy to pay out at least 70% of its net income for the next three years. In accordance with this policy, dividends for this year were set at KRW 18,500 per share, the same as last year, amounting to KRW 270.5 billion in total.
“Based on the judgment that our stock is heavily undervalued, we’ve decided to implement a share repurchase program for cancellation for the first time in our history to generate greater shareholder value,” commented an official of the company.
This day also witnessed HHI Holdings and Korea Shipbuilding & Offshore Engineering (KSOE), the sub-holding company of HHI Group’s shipbuilding and offshore business, release their respective fourth-quarter earnings through public disclosures.
HHI Holdings posted KRW 6.7851 trillion in revenue and KRW 100.6 billion in operating profit in the fourth quarter. The figures represent a 3.9% increase in revenue and a 54.2% drop in operating profit from the previous quarter. Whereas revenue rose thanks in large part to Hyundai Global Service’s sales growth, operating profit was adversely affected by Hyundai Electric's deficit increase due to one-off factors.
KSOE announced it posted KRW 4.342 trillion in revenue and KRW 169.9 billion in operating profit, up 19.2% and 460.7%, respectively, compared to the previous quarter. Despite a slight drop in the company’s performance in the shipbuilding sector due to a fall in the exchange rate, revenue recognition from change orders in the offshore plant sector led to an increase in operating profit.