Geum Yi

Hyundai Heavy shifts to black in Q2 on equity gains

July 23, 2021

Hyundai Heavy Industries Holdings Co. (HHIH) on Friday said it shifted to the black in the second quarter from a year earlier on increased gains from equity ties with its oil refining unit and other subsidiaries.

Its net profit came to 21.8 billion won (US$18.9 million) in the April-June period from a net loss of 12.9 billion won a year earlier.

Sales rose 58 percent on-year to 6.33 trillion won in the second quarter, with operating profit increasing 77 percent to 184.6 billion won over the cited period.

“The turnaround in the second quarter mainly came from strong performances in oil refining subsidiary Hyundai Oilbank Co. thanks to increased demand for oil products,” Hyundai Heavy said in an emailed statement.

The global economic recovery from the COVID-19 pandemic also contributed to robust results by other affiliates, such as construction equipment maker Hyundai Construction Equipment Co. and ship repairing unit Hyundai Global Service Co., it said.

In the first half, HHIH reported an operating profit of 718.9 billion won, a turnaround from an operating loss of 382.9 billion won a year earlier.

The first-half net profit came to 316.2 billion won, compared with a net loss of 373.3 billion won a year ago, while sales rose 27.6 percent to 12.4 trillion won over the cited period.

The holding company said it expects to see its second-half earnings further improve as Hyundai Oilbank’s olefin plant will go into operation and profits in the shipbuilding sector will sharply rise.

Meanwhile, HHIH’s board of directors decided to pay 1,850 won in cash dividends per share, totaling 130.7 billion won, to shareholders.

The company will also buy new shares to be issued by its two wholly owned subsidiaries, Avikus Corp. and Hyundai Future Partners Co.

Avikus, an autonomous ship solution developer, plans to float 10,000 ordinary shares worth 8 billion won to finance its research and development as well as facility investment.

Consulting firm Hyundai Future Partners will issue 260,000 common shares worth 26 billion won to acquire Medi Plus Solution, a health care provider via apps.