HJ Shipbuilding & Construction posts W89.4b operating profit in H1, up 727%

HJ Shipbuilding & Construction reported first-half sales of 1.27 trillion won ($898 million), operating profit of 89.4 billion won and net profit for the period of 88.1 billion won, the company announced Thursday.

Driven by a strong shipbuilding division, sales rose 38 percent year-on-year while operating profit surged 727 percent. Net profit for the period also swung to a large surplus from a loss.

In the first half, the commercial vessel segment ramped up construction of eco-friendly, high-value-added container ships, while earnings from defense and other special-purpose vessel projects also fed through. Together, those gains pushed the shipbuilding division to sales of 678.6 billion won and operating profit of 81.7 billion won.

The construction division also maintained a profit despite rising raw materials prices, with public works, housing and civil engineering projects proceeding on schedule. The division posted first-half sales of 584.4 billion won and operating profit of 7.8 billion won.

Going forward, HJ Shipbuilding & Construction said it will maintain its strategy of selective, profitability-focused order-taking through rigorous process and risk management, while pressing ahead on major state infrastructure projects including the Sinbundang Line and GTX rail links, as well as urban redevelopment contracts.

"The profitability-focused order strategy, process efficiency improvements and cost-reduction efforts we have pursued consistently over the past several years are now bearing full fruit," a company official said. "Through eco-friendly and high-value-added vessel orders in shipbuilding and stable portfolio management in construction, we will sustain our growth momentum in the second half and enhance both the company's medium- to long-term competitiveness and shareholder value."