Doosan Construction Achieves Turnaround After 10 Years with 7.3 Billion KRW Net Profit Last Year

[Asia Economy Reporter Kim Min-young] Doosan Construction has achieved a performance turnaround for the first time in 10 years. This result was achieved thanks to winning various projects and selling out all units.

Doosan Construction announced on the 31st that its cumulative performance for last year (consolidated) recorded sales of 1.3986 trillion KRW, operating profit of 83.3 billion KRW, and net profit of 7.3 billion KRW. The interest coverage ratio reached 3.42 times, the highest level in the past 10 years.

Although sales decreased by 23% compared to the previous year, operating profit surged by 178% year-on-year. The company explained that this was due to winning high-quality projects and continuing the streak of sold-out units. Net profit of 7.3 billion KRW marked the first time since 2010 that the company achieved profitability.

Total borrowings were reduced to 245.7 billion KRW, about one-tenth of the 2.4 trillion KRW level in 2010. Net borrowings were also significantly reduced to 125.5 billion KRW, about one-fourteenth of the 1.7 trillion KRW level in 2010. The debt ratio, which was 423% at the end of 2020, was drastically reduced to 235% through a 250 billion KRW third-party allotment capital increase.

Thanks to improvements in performance and financial structure, growth is also prominent in orders and sales. Last year, Doosan Construction's total order amount was 2.2651 trillion KRW, about a 46% increase from 1.5515 trillion KRW the previous year. Including provisional contracts such as selection as the construction company for urban maintenance projects, the amount reached approximately 2.5795 trillion KRW, securing over 1 trillion KRW more than the previous year.

Project sales were also successful. Early last year, 4,393 units of ‘Gimhae Yulha The Sky City Zenith & Frau’ were 100% sold out, followed by successful sales of ‘Doosan We’ve The Zenith Yangsan’ and ‘Banwol Station Doosan We’ve’ among others.

This positive momentum continues this year as well. Starting with ‘Doosan We’ve Gwangju Central Park,’ which completed 100% sales early after its February launch, Doosan Construction plans to supply about 15,000 units across 16 projects including Wonju Wondong and Uam 2 District.

The civil engineering sector is also regaining market attention. The Western Line Urban Railway Project (Saejeol Station to Seoul National University Station), first proposed by Doosan Construction in 2017, along with Wirye Sinsa Line and Seochang to Gimpo Road projects, have been selected as preferred negotiators and are likely to be secured.

The fuel cell business is also showing tangible results. The Incheon Fuel Cell Project (totaling 254.3 billion KRW), which began construction in 2018, entered commercial operation in June last year. The Gwangju Sangmu Fuel Cell Project (totaling 82 billion KRW), which started construction last year, is scheduled to enter commercial operation by the end of August this year. Additionally, Doosan Construction will participate in a 20MW fuel cell power generation project at the Seo Cheongju Interchange, following a business agreement signed in February with Chungcheongbuk-do, Cheongju City, and Korea Expressway Corporation.

In the housing business sector, considering projects that have passed construction company selection or provisional contracts, Doosan Construction has secured orders exceeding 2 trillion KRW. A Doosan Construction official stated, "Last year's order volume will support Doosan Construction's future sales," adding, "We are also accelerating efforts to secure future growth engines such as the fuel cell business aligned with global trends toward eco-friendly policies."

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