Samsung Engineering Q1 Operating Profit 85.5 Billion KRW... 28.2% Decrease YoY

"Base Effect Due to One-Time Factors Including Settlement Profit from Projects Completed in Q1 Last Year"
Operating Profit in Q4 Last Year Up 28.2% to 66.7 Billion KRW Compared to Previous Quarter

[Asia Economy Reporter Ki-min Lee] Samsung Engineering announced that it recorded consolidated sales of 1.5925 trillion KRW, operating profit of 85.5 billion KRW, and net profit of 69.5 billion KRW in the first quarter of this year.

Compared to the same period last year, sales increased by 17.8%, while operating profit decreased by 28.2% due to a base effect from one-time factors such as settlement gains from projects completed in the first quarter of last year. However, operating profit increased by 28.2% compared to 66.7 billion KRW in the fourth quarter of last year, continuing the trend of performance improvement.

Samsung Engineering explained, "Despite the uncertain global business environment, we recorded favorable results exceeding the market average forecast of about 78 billion KRW through thorough project profit and loss checks and continuous cost improvement efforts. The sales from high-quality petrochemical projects won over the past 2 to 3 years are now being fully reflected in our performance, and the industrial environment sector is maintaining a stable profit structure, sustaining performance stability."

Order intake reached 1.2362 trillion KRW, and the order backlog stood at 142 trillion KRW, securing more than two years’ worth of work based on last year’s sales. Samsung Engineering expects to steadily continue its order achievements despite market uncertainties such as the impact of international oil prices, as it is preparing to convert FEED (Front End Engineering Design) projects conducted in non-Middle East regions such as Mexico, Malaysia, and the United States into EPC (Engineering, Procurement, and Construction) projects this year.

A Samsung Engineering official stated, "Considering the recent external environment, we plan to focus on project management and sound management to maintain stable growth. We will continue qualitative growth through differentiated project execution and digital technological innovation based on our technological competitiveness."

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