Hyundai Heavy Q3 profit rises on offshore plants

SEOUL, Oct 29 - Hyundai Heavy Industries <009540.KS> reported a 55 percent rise in quarterly operating profit helped by solid results in its offshore plant unit, but the result missed forecasts due to the weakening shipbuilding business.

Hyundai, the world's biggest shipbuilder, posted a 531.7 billion won operating profit for the July-September quarter, missing a 602.3 billion won profit forecast by Thomson Reuters I/B/E/S.

The result compares with a 344 billion won operating profit a year earlier and 534.7 billion won in the previous quarter.

The shipbuilding industry is set to suffer a prolonged downturn as shipping firms globally struggle under financial troubles. New orders have dried up while shipbuilders face requests for delays or cancellations for existing orders.

But leading shipyards such as Hyundai, Daewoo Shipbuilding&Marine Engineering <042660.KS> and Samsung Heavy Industries <010140.KS> are expected to weather the slump by focusing on energy development deals, such as Australia's Gorgon project that awarded Hyundai a $2 billion order last week.

Weighed by the weak outlook, Hyundai Heavy shares fell 15 percent this year through Wednesday, against a 43 percent gain in the broader market <.KS11>.