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10 Feb 2025
HD KSOE Sets Record Revenue & Profit in 2024
Keywords
HD Hyundai achieved a historic milestone in 2024, reporting consolidated revenue of KRW 67.77 trillion, a 10.5% increase from the previous year. Operating profit surged 46.8% YoY to KRW 2.98 trillion, marking an all-time high.
HD Hyundai attributed this success to its strategic focus on eco-friendly technologies and business diversification across multiple sectors.
HD Korea Shipbuilding & Offshore Engineering: Driving Growth Through Green Technology
As the intermediate holding company of the group's shipbuilding business, HD Korea Shipbuilding & Offshore Engineering (HD KSOE) played a key role in this record-breaking performance.
2024 Financial Highlights:
- Revenue: KRW 25.54 trillion (+19.9% YoY)
- Operating profit: KRW 1.43 trillion, more than 5x growth
This profitability surge was primarily driven by the delivery of high-value, eco-friendly vessels, particularly LNG carriers. With tightening global environmental regulations and rising demand for green technologies, LNG carriers remain a high-growth sector.
A spokesperson from HD KSOE revealed plans to expand into the U.S. naval maintenance and ship repair market, with the first MRO (Maintenance, Repair, and Overhaul) bid scheduled for February 2025 and ambitions to secure 2-3 additional projects within the year.
HD Hyundai Heavy Industries & HD Hyundai Electric: Riding the LNG & AI Wave
HD Hyundai Heavy Industries (HHI):
- Dominates the LNG carrier market, driving a 4x increase in operating profit to KRW 705.2 billion.
HD Hyundai Electric:
- Revenue: KRW 3.32 trillion
- Operating profit: KRW 66 billion
- Growth fueled by advancements in AI-driven technologies
Challenges in the Refining Sector: HD Hyundai Oilbank Faces Headwinds
While many sectors thrived, HD Hyundai Oilbank faced a challenging year, with operating profit plunging nearly 60% to KRW 258 billion, largely due to a sluggish refining market.
However, an Oilbank representative expressed optimism, noting that U.S. tariffs on Canadian crude oil could create new opportunities for Korean refiners by shifting global supply dynamics.
Future Strategy: Sustainable Growth Amid Uncertainty
Despite increasing global uncertainties, HD Hyundai aims to prioritize profitability across all business segments by leveraging:
- Strong shipbuilding & power equipment performance
- Ongoing investment in eco-friendly technology
- Maximizing production efficiency
Disclaimer: Blooming reserves the right of final explanation and
revision for all the information.