Seoul: HD Korea Shipbuilding and Offshore Engineering Co. (HD KSOE) announced on Monday a remarkable increase in its third-quarter net profit, which surged nearly fivefold compared to the previous year. This significant growth is attributed to a rise in orders for high-end ships.

According to Yonhap News Agency, the company's net profit for the quarter ending September 30 skyrocketed to 876.7 billion won (approximately US$614.3 million), a substantial increase from 176.4 billion won recorded during the same period last year. The regulatory filing highlighted that the company's improved productivity in the commercial vessel division, increased sales of high-end ships, and enhanced performance in the engine and machinery division were key contributors to the profit surge.

Operating profit for the quarter more than doubled, reaching 1.05 trillion won from 398.4 billion won, while sales experienced a 21.4 percent rise, totaling 7.58 trillion won compared to 6.25 trillion won the previous year. For the first nine months of the year, the company's net profit more than doubled to 1.93 trillion won from 727.5 billion won, with operating profit more than tripling to 2.87 trillion won from 935 billion won. Sales for this period climbed 18.5 percent, reaching 21.78 trillion won from 18.38 trillion won.

HD KSOE operates as a subholding unit of HD Hyundai Co., South Korea's leading shipbuilding conglomerate. The company manages three affiliates: HD Hyundai Heavy Industries Co., HD Hyundai Samho Heavy Industries Co., and HD Hyundai Mipo Dockyard Co. Notably, HD Hyundai Mipo is set to merge into HD Hyundai Heavy next month, further consolidating the group's operations.