The Hyundai Heavy Industries (HHI) group has attributed losses in fiscal year (FY) 2020 to factors including the Covid-19 pandemic and exchange rates.
The South Korean corporation – one of the country’s most important naval shipbuilders – said in a stock exchange filing that its revenues in FY 2020 fell year on year by 29% to KRW18.9 trillion (USD16.96 billion). It also suffered an operating loss of KRW597 billion, compared with profit of KRW666 billion last year.
It said the losses were linked to a fall in oil prices, the South Korean won’s strength against the US dollar, and deteriorating business conditions linked to the pandemic.
The HHI group operates several units but its biggest business is shipbuilding, which is headed by its Korea Shipbuilding & Offshore Engineering (KSOE) subsidiary that operates as the holding company for the HHI shipbuilding company and other shipyards.
In 2020 KSOE posted a 1.8% decline in sales to KRW14.9 trillion and its operating profit fell 74% to KRW74.4 billion.
HHI and its shipbuilding units are suppliers to the Republic of Korea Navy and export markets, with capabilities in constructing naval platforms including frigates, submarines, destroyers, and support vessels.
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