Daewoo Construction Q2 Operating Profit 104.8 Billion KRW... Down 51.9% YoY

"Decline in Q2 Earnings This Year Due to Base Effect from Last Year's Q2 Earnings Growth"
"Large Project Orders Becoming Visible, Earnings Improvement Expected by Year-End"

Daewoo E&C's operating profit for the second quarter of this year (consolidated basis) was 104.8 billion KRW, representing a 51.9% decrease compared to the same period last year. On the 30th, Daewoo E&C announced this through a public disclosure.

Sales also declined by 13.8% year-on-year to 2.8215 trillion KRW. Net profit fell by 52.7% to 96.5 billion KRW. A Daewoo E&C official stated, "The decline in second-quarter performance this year is due to the base effect from the strong results in the second quarter of last year," adding, "Last year's second quarter saw an unusually high performance as many sites with favorable cost ratios were completed."

Additionally, the official explained that the sustained high interest rates, rising cost ratios, and a decrease in the number of sites negatively impacted the performance. For the first half of this year, Daewoo E&C recorded sales of 5.3088 trillion KRW, operating profit of 219.6 billion KRW, and net profit of 188 billion KRW. Sales decreased by 9.7% and operating profit by 44.3% compared to the first half of last year.

A Daewoo E&C official said, "However, the operating profit margin for the first half was 4.1%, and the net profit margin was 3.5%, maintaining industry-leading solid management," and "since first-half sales have achieved 51% of this year's annual plan, it is expected that the business plan will be smoothly achieved by the end of this year."

Following large-scale project orders in the first quarter, including the Seongnam Sujin 1 District redevelopment (779.3 billion KRW) and the Incheon ultra-low temperature logistics center (448.2 billion KRW), Daewoo E&C secured orders in the second quarter for the Yeouido Gojak Apartment reconstruction (570.4 billion KRW), Daejang?Hongdae metropolitan railway (289.6 billion KRW), and Dongtan 2 A76-2BL private participation public housing project (222.6 billion KRW).

As of the end of the first half, the order backlog stood at 44.9888 trillion KRW, which corresponds to about 3 to 4 years of work considering the annual sales volume.

A Daewoo E&C official said, "Recently, Daewoo E&C, participating as Team Korea, was selected as the preferred negotiator for the Czech nuclear power plant project, signaling the start of large-scale overseas orders," adding, "In the second half, orders for prepared large-scale projects such as the Turkmenistan fertilizer plant, the new city development project in Thai Binh Province, Vietnam, and the Libya reconstruction project are expected to materialize, so performance improvement is anticipated by the end of the year."

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