HD Korea Shipbuilding & Offshore Engineering (009540) Q4 2024 earnings summary

Executive summary

• Sales rose 14.7% quarter-over-quarter (QoQ) and 19.6% year-over-year (YoY) in 4Q24, driven by increased work volumes and higher newbuilding prices.

• Operating profit increased 25.3% QoQ and 209.8% YoY, reflecting improved subsidiary earnings and revenue growth.

• Net income turned to profit, reaching 727.1 bn KRW in 4Q24, a significant turnaround from a loss in 4Q23.

Financial highlights

• 4Q24 sales: 7,161.7 bn KRW (+14.7% QoQ, +19.6% YoY); FY24 sales: 25,538.6 bn KRW (+19.9% YoY).

• 4Q24 operating profit: 499.1 bn KRW (+25.3% QoQ, +209.8% YoY); FY24 operating profit: 1,434.1 bn KRW (+408.0% YoY).

• 4Q24 net income: 727.1 bn KRW (turned to profit YoY); FY24 net income: 1,454.6 bn KRW (+903.9% YoY).

• Gross profit for 4Q24: 829.5 bn KRW (+17.4% QoQ, +147.7% YoY).

• Operating margin improved to 7.0% in 4Q24 from 6.4% in 3Q24 and 2.7% in 4Q23.

Outlook and guidance

• Management expects continued positive momentum, supported by high-priced vessel deliveries and ongoing offshore projects.

• Cautions remain regarding market volatility and uncertainties in the global shipbuilding and offshore sectors.