Hyundai Heavy announces 5-for-1 share split, 2020 operating loss

Hyundai Heavy Industries Holdings Co. on Thursday announced a five-for-one share split after reporting an operating loss in 2020 due to weak shipbuilding demand amid the global pandemic.

The face value of its shares following the stock split will be cut to 1,000 won apiece from 5,000 won, with the number of its total outstanding shares at 79 million, the company said in a regulatory filing on Feb. 4.

New shares will be listed on the Korea Exchange on Apr. 12 following approval at its annual general meeting in March.

The holding company of the Hyundai Heavy Industries group also said it is paying a cash dividend of 18,500 won per common stock to shareholders of record at the end of 2020, the same amount as the previous year.

“We’ve decided on the stock split and dividend payout on expectations of improved earnings this year. We will redouble our efforts to become profitable in our mainstay refining, shipbuilding and construction machine businesses,” said a company official.

ROSY OUTLOOK FOLLOWING WEAK PERFORMANCE

Earlier Thursday, Hyundai Heavy Industries Holdings reported 18.91 trillion won ($16.9 billion) in revenue in 2020, down 29% from the previous year. It posted an operating loss of 597.1 billion on a consolidated basis, a turnaround from a profit in 2019.

Korea Shipbuilding & Offshore Engineering Co. (KSOE), the intermediate holding company of the group, posted a smaller operating profit of 74.4 billion won in 2020, down 74.4% from a year earlier.

The company attributed the weak performance to foreign-currency translation losses linked to the won’s strength versus the dollar and asset impairment related to its shipyard in Kunsan.

Hyundai Heavy Industries on Thursday offered a bright 2021 outlook for its shipbuilding business.

“We’re receiving a series of container ship orders from the start of the year. Besides, we expect to win orders for at least 25 LNG carriers this year,” said a company official.

Write to Man-Su Choe at bebop@hankyung.com
In-Soo Nam edited this article.