HJ Shipbuilding & Construction posts W155.4b in operating profit through Q3

HJ Shipbuilding & Construction posted sharp earnings growth through the third quarter of this year, driven by improved profitability in its shipbuilding division and stable operations in construction, the company said.

The company disclosed Thursday that its cumulative nine-month consolidated sales reached 2 trillion won ($1.5 billion), with operating profit of 155.4 billion won and net profit for the period of 130.6 billion won.

Compared with the same period a year earlier — when sales stood at 1.37 trillion won, operating profit at 16.6 billion won and net profit at 2.9 billion won — sales rose 46.3 percent, operating profit increased more than eightfold and net profit climbed more than 44-fold.

The earnings improvement was led by stronger profitability across the shipbuilding division, which spans commercial and special-purpose vessels. In the commercial segment, construction of eco-friendly, high-value-added container ships moved into full swing, lifting both sales and margins. The special-purpose vessel segment, including US Navy maintenance, repair and overhaul work, also contributed steady profits.

The shipbuilding division's cumulative nine-month sales reached 1.13 trillion won, up 88.1 percent from 600.5 billion won a year earlier, while operating profit came in at 149.7 billion won, driving the company's overall margin improvement. The division maintained stable production despite headwinds from a weaker exchange rate and fewer working days due to summer holidays and the Chuseok holiday, by raising dock utilization rates and improving process efficiency.

The construction division also stayed in the black, anchored by public works, civil engineering and housing projects. Cumulative nine-month sales reached 874.2 billion won and operating profit came in at 5.6 billion won. The division plans to sustain a profit-focused, selective bidding approach centered on competitive areas such as public construction and urban redevelopment, while continuing to improve its earnings structure through rigorous process and cost management and greater on-site operational efficiency.

"Expanding the share of high-value-added vessel sales in the shipbuilding division, combined with various special-purpose vessel projects, was supported by stable order-taking and operations in the construction division," a company official said. "We will strengthen the competitiveness of both business divisions, sustain our growth momentum through profit-centered management, and work to enhance corporate and shareholder value."