"Hyundai Construction's Q2 Operating Profit Down 37% Due to COVID-19 Impact and Conservative Accounting"

[Asia Economy Reporter Yuri Kim] Hyundai Engineering & Construction announced on the 24th that its consolidated operating profit for the second quarter of this year was 153.9 billion KRW, a 37.2% decrease compared to the same period last year. During the same period, sales decreased by 2.9% to 4.5442 trillion KRW, and net profit fell by 63.9% to 69.4 billion KRW.

Including the first quarter, operating profit for the first half of this year was 319.2 billion KRW, down 29.1% year-on-year, while sales increased by 0.5% to 8.603 trillion KRW. Net profit decreased by 23.6% to 266 billion KRW.

Hyundai Engineering & Construction explained the poor operating profit compared to the same period last year as "an impact of conservative accounting treatment due to the expectation that the COVID-19 situation would prolong."

Orders in the first half of the year rose 61.6% year-on-year to 18.5574 trillion KRW, driven by domestic and overseas projects such as the Panama Metro Line 3, Qatar Lusail Plaza Tower PLOT3 and PLOT4 construction, Hannam 3 District redevelopment, and Busan Beomcheon 1-1 District redevelopment. The company stated that this amount represents about 74% of its annual order target of 25.1 trillion KRW for this year.

The order backlog increased by 17.7% compared to the end of last year, reaching 66.2916 trillion KRW. The company explained that this secures approximately 3.8 years’ worth of work.

Hyundai Engineering & Construction plans to prepare for the rapidly changing post-COVID era by investing in future growth engines based on a solid financial structure. The company said, "In line with the growing social demand for a low-carbon and eco-friendly economy, we plan to secure future growth engines centered on renewable energy and eco-friendly initiatives as part of Korea’s New Deal policy." It added, "Key ongoing projects include hydrogen fuel cell power generation, offshore wind power, tidal power generation, and contaminated soil purification projects."

A Hyundai Engineering & Construction official said, "Despite the challenging global economy, we will continue qualitative growth by strengthening core competitiveness in design, technology, and execution, and by discovering future growth engines."

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