Hyundai Marine Achieves Highest Profit Margin Amid Eco-Friendly Engine Demand

HD Hyundai Marine Solution Co., a ship parts manufacturing and after-sales service company, achieved the highest operating profit margin in South Korea’s maritime industry in the first half of this year. This success was driven by the increasing demand for eco-friendly engines to comply with strict low emission regulations. The company, which is an affiliate of the world’s largest shipbuilder HD Hyundai Heavy Industries Co., reported an operating margin of 14.9% as of June, with an operating profit of 122.4 billion won ($91 million) from sales of 820.8 billion won in the first six months of the year. This marked a slight increase from the previous year’s margin of 14.1%.

As the International Maritime Organization (IMO) introduced guidelines to reduce carbon emissions from international shipping by at least 40% by 2030, there has been a rise in ship modification orders. Companies are opting to convert ship engines into hybrid or dual fuel engines rather than ordering new vessels. HD Hyundai Marine Solution is an exclusive supplier of vessel engines and after-sales services to its affiliated shipbuilders, controlling 36% of the world’s large ship engines. The company offers after-sales services for 20 to 25 years post-ship delivery and saw a 29% revenue increase in its division for modifications to dual fuel engines in the second quarter.

The company’s success in the maritime industry is evident in comparison to other major shipbuilders and ship parts makers in South Korea. HD Hyundai Marine Solution’s operating profit margin of 14.9% outshines competitors like HD Korea Shipbuilding & Offshore Engineering, which recorded a margin of 4.4%. With a focus on eco-friendly solutions and adapting to new regulations, HD Hyundai Marine Solution is at the forefront of innovation in the maritime sector, positioning itself as a leader in providing sustainable and efficient ship engines and services.

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