- HD Hyundai Marine Solution has reported the highest-ever operating profit margin in South Korea’s maritime industry in the first half of this year.
- The record profits stem from growing demand for eco-friendly engines in line with stringent low emissions regulations.
HD Hyundai Marine Solution Co., a ship parts manufacturing and after-sales service company, has reported the highest-ever operating profit margin in South Korea’s maritime industry in the first half of this year. The record profits stem from growing demand for eco-friendly engines in line with stringent low emissions regulations, according to KED Global.
Tighter emissions rules boost HD Hyundai Marine margin
The operating margin at HD Hyundai Marine Solution, an affiliate of the world’s largest shipbuilder HD Hyundai Heavy Industries Co. reached 14.9% as of the end of June this year.
It earned 122.4 billion won ($91 million) in operating profit on sales of 820.8 billion won in the first six months of 2024.
The margin represented a 0.08-percentage-point rise from the previous year’s 14.1%. That was notably higher than the 4.4% for HD Korea Shipbuilding & Offshore Engineering Co., the intermediate holding company of HD Hyundai Co. at the top of the shipbuilding group’s ownership structure.
Ship modification orders have been rising since the International Maritime Organization (IMO) set out guidelines, effective from 2023, to reduce carbon emissions from international shipping by at least 40% by 2030.
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Source: KED Global
