Doosan Construction Accelerates Management Normalization Through Financial Structure Improvement

[Asia Economy Reporter Onyu Lim] Doosan Construction is accelerating the normalization of management through financial structure improvement.

According to Doosan Construction on the 30th, the total borrowings, which were about 2.4 trillion KRW in 2010, have been reduced to about 250 billion KRW as of the first quarter of this year, shrinking to about one-tenth. Net borrowings, which were about 1.7 trillion KRW, have drastically decreased to 82.5 billion KRW, about one-twentieth.

The stabilization of the financial structure is also reflected in this year’s performance. Doosan Construction recorded sales of 289.6 billion KRW and operating profit of 16.9 billion KRW in the first quarter. The interest coverage ratio was 2.07 times, the highest level in the past 10 years. A Doosan Construction official said, "The main factors for the performance improvement are the increase in operating profit margin due to selective project orders considering cost rate and sales feasibility, and the reduction of financial costs resulting from financial improvement efforts pursued for over 10 years."

Orders for maintenance projects are also continuing. This year, the company secured projects such as the Gwangmyeong Soha 4 District Street Housing Maintenance Project in Gyeonggi Province, Incheon Sambu Apartment Reconstruction, Changwon Hapjeong-dong 2 District Redevelopment in Gyeongnam, and Incheon Sangok 3 District Redevelopment.

Doosan is also actively engaging in new housing sales. It plans to supply about 11,000 households in the metropolitan area and provinces by the end of the year. In the metropolitan area, it plans to sell 5 to 6 projects including Yeongdeungpo and Eunpyeong-gu in Seoul, Songnim-dong and Yeoui Station area in Incheon. In the provinces, sales are underway in Samcheok Jeongsang, Gimhae Yulha, and Yangsan Seokgye.

Meanwhile, in the public sector during the first quarter, Doosan achieved orders worth a total of 156 billion KRW, including the expansion Section 1 of Ansan-Buksuwon on Yeongdong Expressway, Pyeongtaek Electric Supply Facility Power Duct, and Local Road No. 60.

A company official explained, "We will continue to do our best to strengthen financial soundness while focusing our capabilities on sustainable growth such as securing high-quality projects and improving cost rates."

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