FEBRUARY 4, 2016 – Hyundai Heavy Industries (HHI), the world's largest shipbuilder, racked up a 2015 operating loss and net loss of 1.5401 trillion won ($1.3 billion) and 1.3632 trillion won ($1.1 billion) respectively. Those numbers were actually a big improvement on the equivalent 2014 losses of 3.2495 trillion won and 2.2061 trillion
Sales, at 46.2317 trillion Korean won, were down 12.1 % on the previous year.
An HHI officer said, "2015 was a tough year for us due to unfavorable market conditions such as prolonged low oil prices and global economic downturn. We suffered losses incurred from the cancellation of semi submersible rigs and increased manhours and delivery delays of offshore projects triggered by design changes."
HHI says it remained in deficit due to a one-off maintaining cost for drillships it delivered, loss provision for an offshore project, and increased on-site installation costs for two power plant projects. Its construction equipment business also stayed in the red due to lackluster sales caused by global economic downturn and restructuring costs for ailing subsidiaries.
The refinery sector saw profit increases on the back of the refining margin growth. HHI's Engine & Machinery, Electro Electric System and Green Energy business also reported profits, helped by continuing cost cutting efforts.
"Even though we have failed to turn a profit in 2015, We believe that we laid the groundwork for a turnaround for 2016 with a series of comprehensive restructuring measures ranging from liquidating unprofitable overseas subsidiaries and launching HR efficiency enhancement program to shoring up our finances by selling off stock assets. We are committed to returning to profitability this year with rigorous cost cutting and manufacturing process stabilization," the HHI officer said.