HD Korea Shipbuilding & Offshore Engineering's Q3 Net Profit Drops 11.4%

HD Korea Shipbuilding & Offshore Engineering's third-quarter net profit declined 11.4% to 777 billion won, equivalent to $580 million, compared to 876.7 billion won in the same period last year, South Korea's national news agency Yonhap reported on Wednesday.

The company's operating income surged 37.3% to 1.44 trillion won, while revenue increased 9.3% to 8.28 trillion won.

The financial results fell short of market expectations, with analysts estimating a net profit of 915 billion won, according to a survey by Yonhap Infomax.

HD Hyundai Heavy Industries Co., the flagship shipbuilding unit, reported a 30.2% rise in sales to 5.75 trillion won and a 61.3% jump in operating profit, driven by higher ship prices and strong demand for engines and offshore plants.

HD Hyundai Samho Co. saw sales increase 20.5% to 2.37 trillion won and operating profit rise 56.3% to 479 billion won, boosted by a higher share of liquefied natural gas carriers in its sales mix.

HD Hyundai Marine Engine Co. experienced a significant surge in sales, which rose 93.8% to 211.4 billion won, and operating profit, which nearly tripled to 60.3 billion won, due to increased engine deliveries and stronger sales of dual-fuel engines.

HD Korea Shipbuilding & Offshore Engineering is a major player in the global shipbuilding industry, operating as a subholding company of HD Hyundai Co.

The company's performance is closely tied to the demand for ships, particularly liquefied natural gas carriers, and the overall health of the global shipping market.