HHI’s reduction of material costs for non-shipbuilding businesses including construction equipment also played a role in realising profits.

Korean engineering firm Hyundai Heavy Industries (HHI) reports strong financial performance for the first half of 2016.

The second quarter from April-June period proved strong for the Korean engineering firm, achieving USD8.68142 billion (9.8627 trillion Won) in sales, while operating income stood at $490.504 million (557.2 billion Won). Accumulated sales reached USD17.7306 billion (20.1355 trillion Won) while operating profits for the first half of this year reached $777.01 million (882.4 billion Won). As a result, profits for the engineering firm reached US$792.754 million (900 billion South Korean Won) for the first half of 2016.

HHI attributes operating profits for two consecutive quarters to a series of drastic and comprehensive restructuring measures put in place since 2014 by the incumbent top management, and strong performances of Hyundai Oilbank, its refining subsidiary.

“It is encouraging to post profits for two consecutive quarters but we still have a long way to go. Bearing in mind the 80% drop in new orders for our shipbuilding business for the first six months of this year, we will continue to faithfully implement the management improvement plan to facilitate sustainable performance,” the company says in a statement.