DL E&C Q2 Operating Profit 71.9 Billion KRW... 46% Decrease YoY

23% Increase in Cumulative New Orders in H1
13% Increase in Consolidated Sales in H1 Compared to Previous Year

DL E&C announced on the 27th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 71.9 billion KRW, a 46.6% decrease compared to the same period last year. However, the housing cost ratio, which had been rising every quarter since the second quarter of last year, improved for the first time in over a year, falling by 0.6 percentage points from the previous quarter to 91.7%.

Sales increased by 5.0% year-on-year to 1.9706 trillion KRW. Net profit decreased by 69.4% to 35.5 billion KRW. The cumulative sales for the first half of the year were 3.8206 trillion KRW, and operating profit was 162 billion KRW.

DL E&C projected, "With significant increases in the performance of the plant and overseas subsidiaries, we are expected to smoothly achieve the annual consolidated sales guidance of 8.2 trillion KRW presented at the beginning of the year."

DL E&C stated that thanks to an aggressive order-winning strategy across all business divisions, it achieved new orders worth 5.5137 trillion KRW in the first half alone. In the civil engineering division, it secured the Namhae-Yeosu Undersea Tunnel project with a total project cost of 697.4 billion KRW, marking an increase of more than 23% compared to the first half of last year (4.4818 trillion KRW). Particularly, in the plant division, it won the Package 1 TC2C construction (Shahin Project) worth 1.4 trillion KRW, recording a total of 1.8649 trillion KRW in new orders, more than four times the amount from the first half of last year.

The housing business also achieved favorable order results. In May, DL E&C was selected as the preferred negotiator for the ‘Baekhyeon MICE’ urban development project with a total project cost of 6.3 trillion KRW, and orders worth approximately 2 trillion KRW are expected to be included in the third quarter. Last week, it also secured the construction rights for the ‘Jungdong 5 District Housing Redevelopment Project’ worth 540.1 billion KRW, considered the best location in Haeundae, Busan.

As of the end of the second quarter, DL E&C’s consolidated debt ratio stood at 89%, and it held net cash of 1 trillion KRW, maintaining the most stable financial structure among domestic construction companies. Despite the liquidity crisis intensifying across the construction industry due to the recent deterioration of real estate project financing (PF), DL E&C received a top-tier credit rating of ‘AA-’ from Korea Ratings and Korea Credit Rating.

A DL E&C official stated, "This year as well, we will maintain a stable financial structure by keeping net cash holdings and a low debt ratio unchanged, and continuously improve sales and operating profit based on our diverse construction experience and know-how."

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