HHI Holdings sees earnings halved in Q3, but signs of improvement

Hyundai Heavy Industries Holdings (HHI Holdings) swung to a net profit on quarter in the third quarter, but saw its earnings decline almost 50 percent on year, reported the company in a regulatory filing on Friday.

HHI Holdings is the parent company of Korea Shipbuilding & Offshore Engineering, which has Hyundai Heavy Industries as a subsidiary.

The holding company on Friday reported 34.6 billion won ($30.52 million) in net profit in the third quarter, down 47.7 percent on year. But it swung to a profit from 12.9 billion won in net loss from the previous quarter. Its revenue totaled 4.58 trillion won in the third quarter, down 29.9 percent on year, but up 14.3 percent on quarter. Its operating profit plummeted 54 percent on year to 101.1 billion won, which is 3.1 percent lower than the previous quarter.

Korea Shipbuilding & Offshore Engineering, which is in the process of acquiring Daewoo Shipbuilding & Marine Engineering, swung to 77 billion won in consolidated net loss from 20.4 billion won in net profit during the same period last year. Its consolidated revenue went down 5 percent on year to 3.46 trillion won.

“Along with Hyundai Oilbank, profits of all subsidiaries improved,” said HHI Holdings in a statement Friday. Earnings of refiner subsidiary Hyundai Oilbank, in particular, saw increases from improved margins from refining and the “elastic production and sales of product.”

Hyundai Construction Equipment also performed well from the recovery of demand for construction equipment from major markets, including China and India.

BY JIN MIN-JI [jin.minji@joongang.co.kr]