DL E&C Q2 Operating Profit 32.6 Billion KRW... Down 54.7% YoY

"Expecting Operating Profit Rebound in Second Half Due to Cost Ratio Improvement"

DL E&C announced that its consolidated operating profit for the second quarter of this year recorded 32.57 billion KRW, a 54.7% decrease compared to the same period last year. The cumulative operating profit for the first half of the year was tentatively estimated at 93.461 billion KRW, down 42.3% from the same period last year.

Photo by DL E&C

A DL E&C official explained, "Reflecting the prolonged downturn in the housing business sector, we re-examined all risk factors at DL Construction, a subsidiary, and as a result, adjustments to the cost ratio and bad debt provisions at some sites had a significant impact." However, the official added that as housing sites with high cost ratios are completed and the proportion of new sites with favorable cost ratios started since last year increases, a rebound in operating profit due to cost ratio improvement is expected in the second half of the year.

Sales for the second quarter were 2.0702 trillion KRW, and 3.960759 trillion KRW for the first half of the year, increasing by 5.06% and 3.67% respectively compared to the same period last year. This increase was influenced by the full-scale commencement of the 'Shahin Project,' the largest petrochemical facility construction in Korea, boosting sales in the plant business sector.

DL E&C emphasized that it has the most stable financial structure among domestic construction companies. As of the end of the second quarter, DL E&C’s consolidated debt ratio stood at 103.3%, with cash and cash equivalents amounting to 2.011 trillion KRW. The net cash holdings were also 850.5 billion KRW. In particular, amid liquidity crises in construction companies due to the deterioration of real estate project financing (PF), DL E&C has maintained the highest credit rating in the construction industry, 'AA-', from the three major credit rating agencies for six consecutive years.

A DL E&C official stated, "In the second half of the year, we will further improve our net cash holdings and low debt ratio to maintain the industry's highest level of stable financial structure," adding, "Based on diverse construction experience and know-how, we will focus on profitability-centered internal management and cost control to gradually improve our performance."

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