Hyundai Heavy Industries’ (HHI) consolidat[ds_preview]ed 2016 full year earnings amount to 1.6419 tn Korean won (1.435 bn US $), surpassing the trillion won mark in four years. The Group’s three shipbuilding companies contributed about 710 bn won (620,553 mill. US $) to the consolidated full year profits.
While HHI witnessed a drop in revenues to 39.3173 tn won (34,365 bn US $) in year-over-year (YoY) terms, its operating income turned a profit to 1.6419 tn won (1.435 bn US $) – full year operating profit in 2015 was -1.5401 tn won. HHI’s consolidated 4Q 2016 results amount 10.3427 tn won in sales and 437.7 bn won in operating profits, posting quarterly profits for four straight quarters.
The group attributes the yearly operating profits to the following factors: increased volume of ships that HHI won at profitable prices, continued efforts to cut costs and streamline shipbuilding processes and improved oil refining margin and increased sales of Hyundai Oilbank, HHI’s oil refinery subsidiary.
HHI Group’s three shipbuilding companies and Hyundai Oilbank respectively contributed about 710 bn won and about 800 bn won to the consolidated full year profits. The stabilization of manufacturing processes for offshore plant business and efforts to reduce material costs of construction equipment and electro electric systems division also played a role in making the profit.
In 2016, HHI implemented a variety of revamping measures to sharpen its competitiveness including carrying out management improvement plan and reorganizing affiliated companies. The company also strengthened its financial soundness by lowering its consolidated liabilities-to-equity ratio to 175% from 220% by the end of 2016 with the sell-off of non-core assets.
An HHI official said, »The comprehensive management improvement efforts we made last year enabled us to make profits even with a dearth of new orders. Even if the market conditions are less likely to turn favorable this year along with shrinking work volumes, all of our employees will stand united to continue to make profits.«
