DL E&C 3Q Operating Profit 258.9 Billion KRW... Operating Margin 14.3%

[Asia Economy Reporter Minyoung Kim] DL E&C announced on the 28th through a preliminary earnings report that its consolidated sales for the third quarter of this year are expected to be 1,806.8 billion KRW, with an operating profit of 258.9 billion KRW. The operating profit margin is 14.3%, which is said to be among the top levels in the construction industry.

With the company split this year, DL E&C set an annual operating profit target of 830 billion KRW. The cumulative operating profit for the third quarter reached 687.7 billion KRW, corresponding to 83% of the annual target. While maintaining a stable cost structure in the housing sector, the operating profit improved further in the third quarter due to increased contracts and completion settlement profits in the plant sector.

On a consolidated basis, new orders in the third quarter amounted to 2,213.5 billion KRW, with a cumulative total of 5,487.9 billion KRW for the first three quarters. In the housing sector, the company has secured numerous projects scheduled for order recognition this year, and in the overseas plant sector, it expects large-scale overseas plant orders in the fourth quarter. The company anticipates achieving its annual order target of 11.5 trillion KRW through these efforts.

Financial stability also remains at the highest level in the construction industry. As of the end of September 2021, the debt ratio was 87%, and net cash amounted to 953.1 billion KRW. Cash and cash equivalents increased by 110.8 billion KRW compared to the beginning of the year, reaching 1,947.6 billion KRW, demonstrating a stable net cash structure.

DL E&C expects that the favorable profit trend will continue into the fourth quarter, enabling the company to record results that significantly exceed the annual operating profit target.

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