HD Hyundai posted third-quarter consolidated sales of 18.22 trillion won ($13.2 billion) and operating profit of 1.70 trillion won ($1.23 billion), the South Korean conglomerate said Sunday. That represents a 9.8% revenue increase and a 294.5% surge in operating profit compared with a year earlier.
The dramatic profit improvement stems largely from the shipbuilding division, which has benefited from a multiyear order boom as vessel owners scramble to comply with environmental regulations. HD Korea Shipbuilding & Offshore Engineering, the group’s shipbuilding arm, recorded sales of 7.58 trillion won ($5.5 billion) and operating profit of 1.05 trillion won ($764 million)—gains of 21.4% and 164.5%, respectively.
Company officials attributed the shipbuilding performance to higher sales of premium vessels and production efficiencies. The refining segment also contributed to results after returning to profitability following a period of compressed margins.
The earnings highlight HD Hyundai’s position in a shipbuilding sector that has seen order books swell amid increased demand for liquefied natural gas carriers and military vessels. However, the company faces intensifying competition from Chinese yards that have gained market share through aggressive pricing.
HD Hyundai operates businesses spanning shipbuilding, oil refining, and heavy equipment manufacturing.
