Hyundai Construction Q3 Operating Profit Decreases to 500.6 Billion Won... Sales Increase

New Orders Total 28.7295 Trillion Won... Annual Target Exceeded

[Asia Economy Reporter Kim Hyemin] Hyundai Engineering & Construction's operating profit for the third quarter of this year was recorded at 500.6 billion KRW, a decrease of 11% compared to the same period last year. However, sales showed an increasing trend thanks to the full-scale commencement of large overseas projects and strong domestic housing performance.

Hyundai Engineering & Construction announced on the 26th that its consolidated results for the third quarter of this year were tentatively recorded as sales of 15.1556 trillion KRW, operating profit of 500.6 billion KRW, and net profit of 642.8 billion KRW. New orders amounted to 28.7295 trillion KRW.

Sales increased by 17.6% compared to the same period last year. This was due to the full-scale commencement of large overseas projects such as the Saudi Marjan project, Iraq Basra refinery, and Panama Metro Line 3, as well as increased domestic housing performance at sites like Hillstate The Unjeong and Hillstate Songdo The Sky. A Hyundai Engineering & Construction official stated, "In the second half of the year, we expect to smoothly achieve the annual sales guidance due to continuous growth in overseas sales and expansion of domestic housing business sales."

Net profit increased by 50.3% compared to the same period last year, reflecting valuation gains on foreign currency net assets on the books due to the rise in the won-dollar exchange rate.

New orders exceeded the annual target, achieving 101.3%. This was the result of securing large overseas projects such as the Philippines Southern Railway project, Saudi NEOM City tunnel project, and Kuwait Shuwaikh port project, as well as domestic projects including Gwangju Gwangcheon-dong redevelopment, Itaewon-dong UN Command site project, and Gwangyang Port wide-area dredged soil disposal site construction.

The order backlog reached 91.2506 trillion KRW, an increase of 15.9% compared to the end of last year. Hyundai Engineering & Construction explained that this secures about five years' worth of work.

Hyundai Engineering & Construction's credit rating is AA-, with a liquidity ratio of 186.6% and a debt ratio of 104.8%. Cash and cash equivalents (including short-term financial instruments) amount to 4.6753 trillion KRW, and net cash holdings stand at 2.9525 trillion KRW.

A Hyundai Engineering & Construction official said, "Even after the fourth quarter, we will accelerate stable mid- to long-term management through the expansion of performance in major domestic and overseas projects and securing liquidity, maintaining market trust through continuous profitability improvement. We will also focus on expanding overseas business based on various future business strategies such as small modular reactors (SMR), smart cities, hydrogen energy, and abundant overseas construction experience."

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