Daewoo E&C Posts Operating Profit of 217.7 Billion KRW in Q2, Up 152% YoY Driven by Overseas Orders

Daewoo E&C achieved an operating profit of 217.7 billion KRW in the second quarter, supported by large overseas projects in Iraq, Nigeria, and other countries. This represents a 152% growth compared to one year ago.

Daewoo E&C Euljiro Building

On the 27th, Daewoo E&C announced its 2023 second-quarter management performance (consolidated, preliminary) through a public disclosure, reporting sales of 3.2714 trillion KRW and an operating profit of 217.7 billion KRW.

Sales increased by 34.0% from 2.4409 trillion KRW in the same period last year to 3.2714 trillion KRW. By business division, sales were ▲ 2.1161 trillion KRW from the Housing Construction Division ▲ 595.7 billion KRW from the Civil Engineering Division ▲ 433.3 billion KRW from the Plant Division ▲ and 126.3 billion KRW from other consolidated subsidiaries.

Operating profit recorded 217.7 billion KRW, a 152.0% increase compared to 86.4 billion KRW in the same period last year. Net profit also rose 321.7% to 204.1 billion KRW from 48.4 billion KRW in the previous year. Despite a highly uncertain business environment, operating profit exceeded market expectations (1.863 trillion KRW based on FN Guide).

Preliminary consolidated results for the first half showed sales of 5.8795 trillion KRW, up 25.4% from 4.6904 trillion KRW in the same period last year, and operating profit of 394.4 billion KRW, up 28.2% from 307.7 billion KRW, maintaining a solid growth trend.

A Daewoo E&C official explained, “Although the cost ratio of the housing construction business increased due to the real estate market downturn and rising raw material and outsourcing costs, profits increased as sales from large overseas projects such as Iraq’s Al Faw in the Civil Engineering Division and Nigeria LNG Train 7 in the Plant Division began in earnest.” He added, “With continued sales from existing large projects and contributions expected from new projects, sustained growth is anticipated mainly in the non-residential business sector.”

New orders in the first half amounted to 5.8063 trillion KRW, down 25.3% from 7.7719 trillion KRW in the same period last year. This achievement corresponds to 47.2% of the annual plan (12.3 trillion KRW). Daewoo E&C stated that there are many large overseas projects expected to be secured in the second half, so there is no difficulty in achieving this year’s business plan. As of the end of the first half, the order backlog stood at 45.0157 trillion KRW, equivalent to 4.3 years of work based on annual sales.

A Daewoo E&C official said, “Due to consecutive large-scale overseas orders in the first half, we have already exceeded the annual overseas order target of 1.8 trillion KRW.” He added, “In the second half, we will focus our capabilities on follow-up orders and new market development in overseas hub countries such as Iraq and Libya to exceed this year’s goals.”

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