HD Korea Shipbuilding & Offshore Engineering boosts profit
Consolidated revenue for the first half of 2026 reached 17.0679 trillion won.
The shipbuilding and offshore engineering firm HD Korea Shipbuilding & Offshore Engineering reported consolidated revenue of 17.0679 trillion won for the first half of 2026. The shipbuilding segment served as the primary driver, contributing 14.1473 trillion won, which represented 82.9% of total revenue.
Profitability improved across the company's operations. Consolidated operating profit for the period was 3.0011 trillion won, an increase from the 1.8127 trillion won recorded in the previous half. The shipbuilding segment alone generated 2.5092 trillion won in operating profit, while the engine and machinery division added 486.715 billion won.
Global market conditions supported this growth. New shipbuilding orders worldwide rose 88.0% in gross tonnage and 34.5% in vessel count during the first half of 2026 compared to the same period last year. The company attributed this trend to a combination of aging vessel replacement needs, stricter environmental regulations driving green ship investments, and intense competition among shipowners to secure construction slots.
Geopolitical factors also influenced demand. The company noted that risks in the Strait of Hormuz stemming from a conflict between the United States and Iran since late February led to more vessels using detour routes and stronger freight rates. This environment increased investment appetite among shipowners, particularly for gas carriers and tankers.
Looking forward, the company intends to maintain a selective ordering strategy focused on high-value vessels to maximize profitability. It is continuing research and development into next-generation alternative fuels and LNG dual-fuel propulsion technology to meet tightening environmental rules.
Beyond traditional shipbuilding, the company is pursuing a Software Defined Vessel business to integrate ship systems via data and software. It is also in the early stages of a shipyard construction business, which includes preparing for a shipyard diagnosis project as part of cooperation to modernize shipyards in the United States.