Struggling Hyundai shipyard delivers profits in the first quarter

Hyundai's shipyard HHI saw its fortunes reverse for the better in the first quarter of 2016, delivering positive figures after several quarters of deficits. Simultaneously, the South Korean government is hinting at several initiatives to help the country's hard-pressed shipbuilding sector.

Photo: Lee Jin-man/AP/POLFOTO/arkiv

For the first time in a long time there is positive news from Hyundai's shipyard Hyundai Heavy Industries (HHI), which delivered a profit in the first quarter of the year, reports Korea Times. The profit of USD 213 million is the first positive result after several quarters of major losses reported by the shipyard, which is one of South Korea's three biggest shipbuilders. Meanwhile, revenue fell by 16 percent to USD 894 million, compared with the fourth quarter of 2015.

According to a spokesman at the shipyard, the profit attributable to the phasing out of contracts to low prices, improved construction processes within offshore and factories, reduced material costs and a declining currency in South Korea. This does not mean, however, that the shipyard is on safe ground.

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