Samsung C&T Construction Division Surpasses 1 Trillion Won Operating Profit Last Year

Construction Sector Operating Profit Increases by 18.2%
Qatar and Neom Tunnel Project Sales Begin in Earnest

Samsung C&T Corporation's construction division surpassed 1 trillion KRW in operating profit for the year 2023.

On the 31st, Samsung C&T announced that its construction division's operating profit for 2023 increased by 18.2% to 1.034 trillion KRW. Sales revenue rose by 32.3% to 19.31 trillion KRW.

Samsung C&T explained, "Strong project sales from high-quality projects such as Qatar solar power and Neom Tunnel have fully materialized, and domestic and overseas orders have increased, resulting in solid performance."

The total order intake for 2023 was 19.228 trillion KRW. By business division, building orders amounted to 17.748 trillion KRW, civil engineering 392 billion KRW, and plant 1.088 trillion KRW.

In the fourth quarter of last year, Samsung C&T's construction division recorded an operating profit of 135 billion KRW, down 44% compared to the same period last year. Sales revenue was 4.678 trillion KRW, up 16.1% from 4.031 trillion KRW in the same period last year.

Although sales increased in the fourth quarter due to higher overseas orders, operating profit declined due to costs related to fire recovery at overseas sites.

Fourth-quarter sales by division were 3.509 trillion KRW for building, 245 billion KRW for civil engineering, and 798 billion KRW for plant. Domestic sales amounted to 2.407 trillion KRW, while overseas sales reached 2.271 trillion KRW.

Samsung C&T's construction division plans to maintain a profitability-focused business approach in existing sectors such as EPC, high-tech, and housing, while generating results in new business areas to transition to a high-profit business structure.

The total order intake target for 2024 is 17.9 trillion KRW, with a new business sector order target set at 2.4 trillion KRW.

Samsung C&T's operating profit for 2023 was preliminarily estimated at 2.8702 trillion KRW, up 13.5%. Sales revenue decreased by 2.9% year-on-year to 41.8957 trillion KRW, while net profit increased by 6.8% to 2.7191 trillion KRW.

Samsung C&T's operating profit in the fourth quarter of last year was 627 billion KRW, down 1.1% year-on-year. Sales revenue decreased by 5.1% to 10.1 trillion KRW.

A Samsung C&T official stated, "Operating profit increased year-on-year due to favorable progress in construction projects, strengthened competitiveness in trading and fashion businesses, recovery in resort leisure demand, and stabilization of growth in our bio subsidiary."

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