Hyundai Heavy Industries cites COVID-19 after Q2 dip

Hyundai Heavy Industries Holdings Co., South Korea’s shipbuilding holding company, said its net profit more than halved in the second quarter from a year earlier on poor performances of its affiliates caused by the COVID-19 pandemic.

Net income came to 22.2 billion won (US$ 18.6 million) in the April-June period from 54.2 billion won a year ago, with its operating profit down 48% to 104.3 billion over the cited period. The company’s sales also fell 41% to 4 trillion won during the stated period.

It said: “Hyundai Heavy Industries Holdings posted sluggish performances in the second quarter as its key refining affiliate Hyundai Oilbank’s earnings dropped sharply due to tumbling oil prices.”

Hyundai Oilbank swung to a net loss of 24.4 billion won in the second quarter from a profit of 51.8 billion won a year earlier.

The poor second-quarter performances also stemmed from a sharp drop in orders, it said.

Korea Shipbuilding & Offshore Engineering Co., its subholding company, posted 400 million won in net profit in the second quarter compared with a profit of 201.6 billion won a year earlier.

For more information visit english.hhi.co.kr

4th August 2020