Hyundai Heavy Industries (HHI) has reported a net profit of KRW 682.3 billion (USD 596.6 million) for the full year of 2016, returning from a loss of KRW 1.36 trillion (USD 1.18 billion) seen in the full year 2015.
The company’s operating profit also marked a turnaround as it stood at KRW 1.64 trillion, against an operating loss of KRW 1.54 trillion, while the shipbuilder said that its revenue dropped by 15 percent to KRW 39.3 trillion from KRW 46.2 trillion in the respective periods.
Yearly operating profits surged mainly due to 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.
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.
“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,” an HHI official said.
During the fourth quarter of the year ended December 31, HHI racked up KRW 10.34 trillion in revenue and KRW 437.7 billion in operating profits, posting quarterly profits for four straight quarters.
HHI’s quarterly net loss shrunk to KRW 288.9 billion from a net loss of KRW 378 billion reported in the fourth quarter of 2015.