Daewoo E&C Reports Q1 Sales of 2.25 Trillion Won, Up 16% YoY

Operating profit 221.3 billion KRW... down 3.5% from last year

Daewoo E&C announced on the 28th that its preliminary consolidated business results for the first quarter of 2022 recorded sales of KRW 2.2495 trillion, operating profit of KRW 221.3 billion, and net profit of KRW 173.6 billion.

Sales increased by 16.0% year-on-year to KRW 2.2495 trillion. Operating profit decreased by 3.5% to KRW 221.3 billion compared to KRW 229.4 billion in the same period last year. Net profit rose by 17.4% (KRW 25.7 billion) to KRW 173.6 billion.

By division, sales were as follows: ▲ Housing Construction Division KRW 1.5143 trillion ▲ Civil Engineering Division KRW 382.5 billion ▲ Plant Division KRW 271.9 billion ▲ Other Consolidated Subsidiaries KRW 80.8 billion.

Sales from overseas projects such as Iraq Al Faw and Nigeria LNG Train 7 increased, and sales in the housing construction division rose due to an increase in pre-sale volume, resulting in higher sales across all Daewoo E&C business divisions compared to the first quarter of last year.

A Daewoo E&C official stated, "Operating profit for the current quarter decreased due to the base effect of temporary gains amounting to approximately KRW 78 billion, including cost rate improvements at housing construction sites in the first quarter of last year and completed overseas plant projects."

New orders amounted to KRW 2.6585 trillion, up 24.4% from KRW 2.1362 trillion in the same period last year. Daewoo E&C currently holds an order backlog of KRW 42.0882 trillion, which corresponds to 4.9 years of work based on annual sales.

Daewoo E&C is preparing to supply about 30,000 housing units this year. Among these, approximately 3,700 units (worth about KRW 2 trillion) in projects such as Suwon Mangpo District, Yangju Station Area, and Hwaseong Hyangnam 1 District are self-developed, promising high profitability.

Additionally, as the proportion of high-quality overseas site sales in Iraq and Nigeria expands, a sales rebound is expected in the civil engineering and plant sectors. With net profit increasing, the debt ratio, which has been steadily declining (213.6% as of the first quarter of 2022), is expected to fall to around 200% by the end of the year.

A Daewoo E&C official said, "Although there are concerns about domestic and international risks such as the sharp rise in raw material prices, we believe we can achieve this year's targets of KRW 10 trillion in sales and KRW 12.2 trillion in new orders through a profitability-focused order strategy, system-based business management capabilities such as cost rate improvements, and synergies with the Jungheung Group."

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