BHI "Order backlog exceeds 700 billion KRW... Significant performance improvement expected in the second half"

BH I has succeeded in significantly improving its operating profit in the first quarter and maintained a positive trend in both separate and consolidated bases in the first half of this year by recording favorable performance in the second quarter as well.

BH I announced on the 16th through a disclosure that its operating profit and net profit on a separate basis for the first half of this year reached 6.03 billion KRW and 1.64 billion KRW respectively, marking a successful turnaround. During the same period, sales increased by 28.1% compared to 153.04 billion KRW in the same period last year, achieving 196.09 billion KRW.

The strong performance of BH I in the first half was due to new orders for energy infrastructure equipment, including various power generation projects for domestic and international large corporations and the Heat Recovery Steam Generator (HRSG), an essential core equipment for combined cycle power plants. Along with this, revenue recognition from previously secured projects continued, accelerating performance growth.

As of the first half of this year, BH I’s remaining order backlog amounts to about 57 projects, combining 42 domestic and 15 overseas projects, totaling 750.5 billion KRW. Additionally, in the second quarter, following the first quarter, the impact of low-profit projects secured during the COVID-19 period was resolved, continuing the trend of profit improvement.

Recently, BH I visited Poland as part of an economic delegation and achieved remarkable results by signing memorandums of understanding (MOUs) with local state-owned and private companies in various sectors including nuclear power and HRSG. Furthermore, convertible bonds (CB) worth 20 billion KRW were converted into stocks, significantly reducing the debt ratio and enhancing the possibility of participating in overseas projects.

Amid rising expectations for new orders in the second half, BH I achieved consolidated sales of 204.26 billion KRW in the first half of this year, a 30.7% increase compared to the same period last year. Operating profit during the same period increased by 375.4% to 1.09 billion KRW; however, net loss continued at 3.68 billion KRW.

A BH I official stated, “New orders are occurring centered on core cash cow items such as HRSG, generating stable sales. However, some loss provisions for projects ordered during the COVID-19 period were preemptively reflected, resulting in a continued operating loss on a consolidated basis under accounting standards.”

He added, “These losses are recorded on the books and may be corrected in the future depending on circumstances. We will spare no effort company-wide to participate in and secure various global projects in the second half to show meaningful performance this year.”

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