HD Korea Shipbuilding & Offshore Engineering (009540) Q2 2024 earnings summary

Executive summary

• Sales rose 19.9% quarter-over-quarter and 21.3% year-over-year, driven by more working days and higher vessel prices.

• Operating profit surged 135.0% QoQ and 428.7% YoY, reflecting a base effect from prior industrial accident costs and improved profitability in shipbuilding.

• Net income attributable to controlling interest increased 54.7% QoQ and 486.7% YoY.

Financial highlights

• 2Q24 sales reached KRW 6,615.5bn, operating profit KRW 376.4bn, and net income KRW 357.8bn.

• Gross profit more than doubled QoQ to KRW 709.1bn, with gross margin improvement.

• Operating profit margin improved to 5.7% from 2.9% in 1Q24 and 1.3% in 2Q23.

Outlook and guidance

• Management notes that future performance is subject to market conditions and strategic changes, with inherent uncertainties in forecasts.