Hyundai Heavy Industries (HHI) issued today a public disclosure of its consolidated 2016 full year earnings of 1.6419 trillion Korean won (hereinafter referred to as ‘won’), surpassing the trillion won mark in four years.

While HHI witnessed a drop in revenues to 39.3173 trillion won in year-over-year (YoY) terms, its operating income turned a profit to 1.6419 trillion won.

HHI also announced consolidated 4Q 2016 results. During the October-December period of 2016 HHI racked up 10.3427 trillion won in sales and 437.7 billion won in operating profits, posting quarterly profits for four straight quarters.

HHI attributes the yearly operating profits to the following factors: increased volume of ships that HHI won at profitable prices, continued efforts to cut costs and streamline shipbuilding processes and improved oil refining margin and increased sales of Hyundai Oilbank, HHI’s oil refinery subsidiary. HHI Group’s three shipbuilding companies and Hyundai Oilbank respectively contributed about 710 billion won and about 800 billion won to the consolidated full year profits. The stabilization of manufacturing processes for offshore plant business and efforts to reduce material costs of construction equipment and electro electric systems division also played a role in making the profit.

In 2016, HHI implemented a variety of revamping measures to sharpen its competitiveness including carrying out management improvement plan and reorganizing affiliated companies. The company also strengthened its financial soundness by lowering its consolidated liabilities-to-equity ratio to 175% from 220% by the end of 2016 with the sell-off of non-core assets.

An HHI official said, “The comprehensive management improvement efforts we made last year enabled us to make profits even with a dearth of new orders. Even if the market conditions are less likely to turn favorable this year along with shrinking work volumes, all of our employees will stand united to continue to make profits.”

*4Q 2016 Consolidated Earnings

Remarks 4Q 2016 3Q 2016 Change (QoQ) 4Q 2105

Sales 10. 3427 trillion won 8.8391 trillion won +17% 11.1391 trillion won

Operating Profits 437.7 billion won 321.8 billion won +36% -279.1 billion won

Net Profits -288.9 billion won 334.4 billion won Turning Loss -378 billion won

*2016 Full Year Consolidated Earnings

Remarks 2016 2015 Change (YoY)

Sales 39.3173 trillion won 46.2317 trillion won -15%

Operating Profits 1.6419 trillion won -1.5401trillion won Returning to Profit

Net Profits 682.3 billion won -1.3632 trillion won Returning to Profit

Source: Hyundai Heavy Industries (HHI)