South Korea’s HJ Shipbuilding returns to profit and seals record orders in 2024
Busan-based company posted an operating profit of $6.3m last year and secured record annual shipbuilding orders
The improved performance reflects the country’s larger shipyards, such as HD KSOE, Hanwha Ocean and Samsung Heavy Industries, all of which are expected to post a full-year operating profit for the first time in 13 years
SOUTH Korea’s HJ Shipbuilding & Construction posted an annual profit of Won9.2bn($6.3m) in 2024, returning to profitability. Sales were Won1.8trn, down 12.8% year on year.
The mid-sized shipbuilder turned from an operating loss of Won108.7bn in 2023, with an operating profit of Won118bn in 2024.
HJSC said: “The surge in the shipbuilding sector and the improvement in the profit structure contributed to the strong business performance.”
A company official told Lloyd’s List: “The breakdown of sales and operating profits from each shipbuilding and construction sector has not yet been disclosed.”
In the shipbuilding sector, the company has secured orders worth Won1.8trn in 2024, an increase of 150% and 300% over 2022 and 2023, respectively.
The latest orderbook is also the highest in the history of its Yeongdo shipyard in Busan.
In 2024, it won orders for eight 7,900 teu environmentally friendly containerships worth Won1.2trn from several European shipowners.
The company said as all these vessels are of similar design, a gradual improvement in productivity and profitability is expected due to production line efficiency gains.
HJSC also earned Won550.4bn from maintenance, repair and overhaul for the South Korean Navy and the construction of a 3,000 tonne patrol vessel and four high-speed patrol boats for the Korea Coast Guard.
The company added: “Thanks to our capabilities in every division and business sector of both shipbuilding and construction, we were able to achieve balanced order results and exceed our goals.”
HJSC’s return to profitability echoes the improving profitability of South Korea’s foremost shipyards.
The country’s “big three” shipbuilders are all expected to post full-year operating profits for the first time in 13 years.
HD Korea Shipbuilding and Offshore Engineering reported an operating profit of Won1.4trn in 2024, up 408% from 2023. Sales were Won25.5trn, up 19.9% year-on-year.
Hanwha Ocean announced an operating profit of 237.9bn and sales of 10.7trn for 2024, making it profitable for the first time in the past four years.
Samsung Heavy Industries, which has yet to announce its 2024 results, is expected to report an operating profit of Won474.6bn and sales of Won9.8trn, according to South Korea’s financial market tracker, FnGuide.
