Hyundai Engineering & Construction Q1 Operating Profit 165.3 Billion KRW, Down 19.4% YoY "Strong Order Performance"

[Asia Economy Reporter Yuri Kim] Hyundai Engineering & Construction announced on the 24th that its consolidated operating profit for the first quarter of this year was 165.3 billion KRW, a 19.4% decrease compared to the same period last year. During the same period, sales increased by 4.7% to 4.0589 trillion KRW, and net profit rose by 26% to 196.5 billion KRW.

Orders received recorded 9.9312 trillion KRW, a 241.9% increase compared to the previous year. In the first quarter alone, about 40% of the annual order target of 25.1 trillion KRW was achieved. This was influenced by domestic and overseas projects such as the Panama Metro Line 3, Qatar Lusail Plaza Tower Plot 3 and 4 construction, and the Busan Beomcheon 1-1 district redevelopment project.

The order backlog stood at 62.2338 trillion KRW, a 10.5% increase compared to the end of last year. Hyundai Engineering & Construction explained, "We have secured about 3.7 years’ worth of stable work."

Sales (4.0589 trillion KRW) increased by 4.7% year-on-year due to the full-scale sales of large overseas projects such as the Bangladesh Matarbari Port project, domestic plant projects including the Hyundai Oilbank refinery improvement project, and a strong housing business.

Hyundai Engineering & Construction stated, "Despite the challenging global environment, we maintain stability with profitability-focused internal management, abundant cash liquidity, and a solid financial structure." They added, "The current ratio, which indicates payment ability, is 189.1%, the debt ratio is 119.3%, and the credit rating is AA-, maintaining a strong financial structure."

Cash and cash equivalents (including short-term financial instruments) increased by 26.7% compared to the end of last year, reaching 5.4446 trillion KRW. Net cash also rose by 54.1% from the end of the previous year to about 2.6321 trillion KRW. The company said, "We maintain the highest level in the industry in terms of cash and cash equivalents."

Overseas, Hyundai Engineering & Construction expects to secure orders in countries such as Saudi Arabia and Iraq, where bids are currently under evaluation. They plan to promote infrastructure projects linked to government policies in various countries, including hospital construction, and focus on major infrastructure (SOC) projects and housing businesses domestically.

A Hyundai Engineering & Construction official said, "We will continue qualitative growth by strengthening core competitiveness in design, execution, and cost, and maintain solid internal management based on a strong financial structure and abundant cash liquidity despite the difficult global economic conditions."

This content was produced with the assistance of AI translation services.