Hyundai Heavy Industries Holdings Co. said Wednesday that it swung to a net loss in the first quarter from a year earlier due to falling refining margins amid low oil prices.
For the three months that ended March 31, the company posted a net loss of 360.4 billion won (US$296 million), shifting from a net profit of 97.6 billion won a year earlier, the company said in a regulatory filing.
The holding company of Hyundai Heavy Industries Group said the net loss is blamed on falling refining margins caused by low crude oil prices.
Refining margins are linked to international oil prices. Higher crude prices mean greater margins, or the difference between the total value of petroleum products and the cost of crude and related services.
The company also shifted to an operating loss of 487.2 billion won from an operating profit of 144.5 billion won a year earlier.
Sales fell 11.9 percent on-year to reach 5.71 trillion won over the cited period, it added.
Its affiliates include Korea Shipbuilding & Offshore Engineering Co. and Hyundai Oilbank Co., one of major refiners in South Korea.
Hyundai Heavy Industries, Hyundai Samho Heavy Industries and Hyundai Mipo Dockyard are shipbuilding units of Korea Shipbuilding & Offshore Engineering Co., the subholding company of Hyundai Heavy Industries Group.
Shares in Hyundai Heavy Industries Holdings rose 5.19 percent to 243,000 won on the Seoul bourse, outperforming the broader KOSPI’s 0.7 percent gain.