Hyundai Construction Reports Operating Profit of 341.9 Billion KRW in H1, Up 7.1% Year-on-Year

New Orders of 18.3904 Trillion KRW, Achieving About 72.4% of Annual Order Target
Order Backlog of 75.652 Trillion KRW, 15.9% Increase Compared to End of Previous Year "Securing 4 Years of Work"

[Asia Economy Reporter Jo Gang-wook] Hyundai Engineering & Construction announced on the 23rd that its consolidated net profit for the first half of this year reached 279.4 billion KRW in a preliminary tally. In particular, operating profit rose 7.1% year-on-year to 341.9 billion KRW, driven by continuous sales generation and profitability improvement. Sales recorded 8.5331 trillion KRW, similar to the same period last year, thanks to strong domestic housing projects.

Orders amounted to 18.3904 trillion KRW through domestic projects such as the Paju Unjeong P1 2BL complex facility construction, Yongin Wangsanjigu apartment complex, and Jeju Hallim offshore wind power investment and development project, as well as overseas projects including Singapore SP Group Labrador Office Tower and substation/management building construction, and Saudi Hail-Al Jouf 380kV transmission line construction. Hyundai Engineering & Construction plans to secure offshore wind power competitiveness by winning the Jeju Hallim offshore wind project based on the competitiveness gained through the Southwest Sea demonstration project, expanding existing businesses to preoccupy the renewable energy market and eco-friendly businesses.

Notably, the new consolidated orders in the first half achieved 72.4% of the annual order target set at the beginning of the year. Hyundai Engineering & Construction plans to focus on construction types with technical and regional competitive advantages such as marine ports, gas plants, complex developments, and transmission/substation projects in the second half, leveraging abundant domestic and overseas construction experience and technical know-how. The order backlog increased by 15.9% compared to the end of last year to 75.652 trillion KRW, securing about four years of stable work and laying the foundation for mid- to long-term growth.

Cash and cash equivalents (including short-term financial products) stand at 5.3926 trillion KRW, with net cash reaching 2.8941 trillion KRW, demonstrating excellent cash liquidity. Continuous financial structure improvements resulted in a current ratio of 200.9% and a debt ratio of 105.1%. The credit rating remains solid at AA-, one of the highest in the industry. This robust financial structure allows the application of the industry's lowest interest rates when raising funds for project execution. Additionally, business partners participating in projects together can also benefit from the same advantages, fostering a win-win effect.

From the second half of this year, Hyundai Engineering & Construction plans to accelerate achieving its annual sales plan through the full-scale revenue generation of large-scale new projects such as the Saudi Mazan development project, Qatar Lusail Plaza construction, and Panama Metro Line 3, supported by steady performance in the building and housing sectors and overseas markets. In particular, as a global construction leader, the company will proactively respond to domestic and international management environments, including the transition to eco-friendly and low-carbon industrial infrastructure, and accelerate business transformation linked to future business strategies.

A Hyundai Engineering & Construction official stated, "We will maintain market trust through continuous profitability improvement and liquidity securing for stable mid- to long-term management," adding, "We will further strengthen our fundamental EPC competitiveness and devote full efforts to new businesses such as construction automation and smart cities, evolving into a ‘Total Solution Creator’ covering all construction areas from investment development to operation."

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