DL E&C Reports Q3 Operating Profit of 116.4 Billion KRW... "No PF Contingent Liabilities"

New Orders Increased by 34.4% Year-on-Year to KRW 2.9745 Trillion

Consolidated Debt Ratio at 89%, Net Cash of KRW 1.3 Trillion

Maintaining a Solid Financial Position with No Concerns over PF Contingent Liabilities

[Asia Economy Reporter Kim Min-young] DL E&C announced on the 27th that its consolidated sales for the third quarter were KRW 1.8489 trillion, and operating profit was KRW 116.4 billion on a provisional basis. Sales increased by 2.33% compared to the same period last year, but operating profit decreased by 55.06%.

This result fell short of market expectations. According to FnGuide, a financial information provider, securities firms’ forecasts for DL E&C’s third-quarter sales and operating profit were KRW 1.8994 trillion and KRW 144 billion, respectively. Sales were about KRW 50 billion lower, and operating profit was KRW 30 billion lower than consensus.

The third-quarter operating profit sharply declined year-on-year due to an increase in housing cost ratios and one-time expenses at overseas subsidiaries. However, the company explained that the standalone operating profit margin, excluding subsidiaries, recorded 8.2%.

Third-quarter consolidated new orders reached KRW 2.9745 trillion, up 34.4% year-on-year, driven by expanded orders in DL E&C’s housing and plant divisions and its subsidiary DL Construction. The order backlog stood at KRW 27.0711 trillion, up 11.3% compared to the end of last year.

DL E&C maintains a stable financial position with a consolidated debt ratio of 89% and net cash of KRW 1.2551 trillion as of the end of the third quarter.

A DL E&C official stated, "We are evaluated as having almost no PF contingent liabilities that could cause defaults, and even in a crisis situation with rapidly rising interest and exchange rates, we are showing improvements in foreign exchange and interest income and expenses based on abundant cash and foreign currency assets."

DL E&C is accelerating the development of various eco-friendly future new businesses. Through a partnership with Terrestrial Energy, a leader in next-generation nuclear power technology in Canada, the company expects to enter the global small modular reactor market, including North America. Recently, it signed a memorandum of understanding with Uljin County for the use of nuclear clean hydrogen and carbon capture, utilization, and storage (CCUS) projects, strengthening its eco-friendly new business portfolio.

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