Hyundai Heavy Industries (HHI) Holdings, the holding company of Hyundai Heavy Industries Group, achieved its best-ever business performance last year on the back of the refinery and construction machinery businesses.
In a consolidated financial statement, HHI Holdings said it posted 1,0854 billion won in operating profit last year, turning around last year’s losses.
Provisional figures showed that the holding company saw sales soar to 28,158.7 billion won, a 48.8 percent year-on-year jump. Net profit stood 186 billion won, turning around last year’s losses.
The holding company’s good business performance for the whole of last year was owed to rising sales in the refinery business, caused by crude oil hikes, and the good performance of the construction machinery business, coupled with increasing investments into global infrastructure.
HHI Holdings logged 64.7 billion in operating profit on a consolidated basis in the fourth quarter of last year, turning around losses in the same period of the previous year.
HHI Holdings posted 8,475.4 billion won in 2021 Q4, an 83.8 percent surge, and 189.6 billion won in net loss.
In particular, Hyundai Oilbank, the refinery unit of HHI Group, chalked up 20,606.5 billion won in sales and 1,142.4 billion won in operating profit.
The refinery unit’s good performance was attributable to expanding inventory caused by crude oil hikes, coupled with rising petroleum product demand.
Hyundai Construction Equipment, the construction machinery unit of HHI Group, logged a record 3,552 billion won in sales last year and 181.8 billion won in operating profit, a 98.5 percent year-on-year jump.
Hyundai Doosan Infracore, which was consolidated into HHI Group last August, posted 1,678.2 billion won in sales and 37.3 billion won in operating profit.
Hyundai Electric logged 1,806 billion won in sales and 9.7 billion won in operating profit, while Hyundai Global Service posted 1,087.6 billion won in sales, a 7.8 percent year-on-year increase, on the back of the retrofitting of eco-friendly ships in the wake of ramping up environmental regulations and rising ship parts service orders.
Korea Shipbuilding & Offshore Engineering (KSOE) logged 15,493.4 billion won in revenue, a 4 percent year-on-year rise, on the back of rising shipbuilding volumes, coupled with increasing eco-friendly shipbuilding orders and the full-fledged recovery of the market.
But KSOE recorded an operating loss of 1,384.8 billion won, turning around last year’s profit.
KOSE posted 696.7 billion won in operating loss on a consolidated basis in the fourth quarter of the year, but saw sales surge 24.7 percent year-on-year to 4,456.7 billion won.
Hyundai Heavy Industries, a subsidiary of KSOE, chalked up 8,311.3 billion won in sales last year, similar to the previous year’s while Hyundai Samho Heavy Industries logged 4,241 billion won in sale, an 8.2 percent year-on-year increase.
Hyundai Mipo Shipyard chalked up 2,887.2 billion won, a 3.4 percent year-on-year rise.
KOSE recorded 1,384.8 billion won in operating loss last year due to the effects of a ruling on ordinary payments and appropriating of allowances related to steel price hikes.
But KOSE is expected to see its business performance improved gradually on the rising shipbuilding orders, 52 percent more than 2021 goal, and reflecting ship price hikes in the second half of this year.
A HHI Holdings official said, “As an uncertainty related to reflecting of one-time costs was eliminated last year and shipbuilding, refinery and construction machinery, its mainstay businesses, are expected to achieve good business performances.”
HHI Holdings will do its utmost to stabilize its business performance through business strategies prioritizing profit-taking and the development of eco-friendly technologies, the official said.
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