HHI profit surges

The South Korean shipbuilder Hyundai Heavy Industries (HHI) announced that its third-quarter profit rose 21% reflecting the higher newbuilding prices of oil tankers, cargo ships and LNG carriers. Net income rose to $210 million from $178 million in the previous year, the Ulsan-based shipbuilder said in a regulatory filing. Sales increased 22% to $3.3 billion while operating profit surged nearly fourfold to $242 million.

“Booming demand for tankers and offshore drilling platforms will keep the industry growing at least until the first half of next year,” according to a South Korean source.

HHI and other South Korean shipyards received a record $12.4 billion worth of orders in the third quarter. Newbuilding orders received by yards in South Korea more than doubled from a year earlier to 5.97 million cgt (compensated gross tons) in the three months to September.

In the first nine months, HHI’s shipbuilding orders reached $9.3 billion, exceeding its 2006 target of $7.4 billion. Offshore projects reached $1.86 billion, achieving 93% of its goal. The shipyard delivered 58 vessels in January to September with an order backlog for 268 ships valued at $22.7 billion at the end of the third quarter.