HJ Heavy Industries Regains Profitability, Soaring Operating and Net Profits... Growth in Both Shipbuilding and Construction

Operating Profit Reaches 24.6 Billion Won in Q1


Shipbuilding Sales Jump 70%


High Value-Added Shipbuilding Drives Performance

HJ Heavy Industries saw a sharp rise in both operating profit and net profit in the first quarter of this year, driven by improved performance in its shipbuilding division.

On May 18, HJ Heavy Industries announced that, according to its consolidated financial statements released on the 15th, its first-quarter sales reached 541.4 billion won, with operating profit at 24.6 billion won and net profit at 25.5 billion won.

Sales increased by 32% compared to the same period last year, when sales were 410 billion won. Operating profit grew from 5.5 billion won to 24.6 billion won year-on-year, and net profit surged from 5.6 billion won to 25.5 billion won.

A 7,900 TEU container ship built by HJ Heavy Industries.

The company explained that the improvement in results was due to a significant volume of high value-added shipbuilding projects being reflected in sales. In particular, strong growth was seen in the shipbuilding division, led by eco-friendly container vessels.

Shipbuilding sales jumped 70% from 158.1 billion won in the same period last year to 268.6 billion won this year. Over the same period, construction division sales increased by 8.6%, from 247.9 billion won to 269.3 billion won.

HJ Heavy Industries stated that the proportion of shipbuilding, which had once fallen below 20% of total sales, has been on a recovery trend since last year.

In terms of operating profit, the company attributed the improvement to a strategy of focusing on orders for eco-friendly and high value-added vessels, as well as strengthened cost management. The company continues to pursue a strategy centered on selective orders for ship types with high cost competitiveness and special vessels such as high-speed patrol boats.

Despite a slowdown in domestic and overseas construction markets and pressures from rising raw material and labor costs, the construction division maintained profitability by focusing on cost rate management. HJ Heavy Industries plans to continue prioritizing profitability in its management policies this year.

A bird's-eye view of the flood control project in Tagum, Philippines, contracted by HJ Heavy Industries in February.

At the end of last year, the company secured contracts for four new Navy high-speed patrol boats, a multipurpose chemical response vessel for the Coast Guard, and a maintenance, repair, and overhaul (MRO) project for the U.S. Navy. Earlier this year, it also won orders for four 10,100 TEU class container vessels, and continues to secure domestic and overseas public construction and maintenance projects.

An HJ Heavy Industries official stated, "Profitability improved as the share of high-profit projects centered on eco-friendly and high value-added ships increased," adding, "With more than three years' worth of stable order backlog secured in both the shipbuilding and construction divisions, we will continue efforts to improve our corporate structure and innovate our cost structure."

This content was produced with the assistance of AI translation services.