Samsung E&A Posts 180.9 Billion KRW Operating Profit in Q2...Momentum Expected in Second Half

Although Down from a Year Ago, Outperforms Market Expectations
Full-fledged Recovery Expected in the Second Half as Saudi Project Revenue Kicks In
"Securing Future Growth Engines Based on Mid- to Long-term Core Strategies"

Samsung E&A recorded an operating profit of 180.9 billion KRW in the second quarter, maintaining a stable performance trend. This result exceeded market expectations, and with the addition of revenue from orders secured last year, the company is expected to enter a full-fledged recovery in the second half of the year.

On July 24, Samsung E&A announced its provisional results for the second quarter of this year, reporting revenue of 2.178 trillion KRW and operating profit of 180.9 billion KRW. Net profit was 141.7 billion KRW. Compared to the same period last year, revenue decreased by 18.9%, operating profit by 31.1%, and net profit by 31.0%. The cumulative revenue for the first half of the year was 4.276 trillion KRW, with operating profit at 338.2 billion KRW and net profit at 298.9 billion KRW.

Samsung E&A logo. Samsung E&A

Samsung E&A explained the background of these results by stating, "We achieved operating profit exceeding market expectations due to project cost improvements and settlement gains. We expect performance to recover in the second half of this year as revenue from the Saudi Fadhili Gas Plant project, secured last year, is reflected. As a result, we anticipate achieving our annual operating profit target."

Order intake for the first half of the year totaled 2.6484 trillion KRW, and the order backlog stands at approximately 18.2 trillion KRW, which is double last year's revenue. Visible achievements are expected in strategic regions such as the Middle East and North America in the second half.

The second quarter was notable for achievements in the eco-friendly energy transition sector. In April of this year, Samsung E&A participated in a biodegradable plastic project in the United Arab Emirates (UAE), entering the Middle East's first eco-friendly plastic plant market. In May, the company accelerated commercialization by launching 'CompassH2,' a green hydrogen production technology solution, in partnership with global hydrogen company Nel, whose shares were acquired this year. Additionally, last month, Samsung E&A held a tech forum, further establishing its status as a leading global energy technology company.

A Samsung E&A representative stated, "We will continue to focus on project management and sound management practices to ensure stable growth. At the same time, we will strengthen the foundation for future sustainable growth by centering our mid- to long-term core strategies on innovative technologies (AHEAD) and the energy transition and eco-friendly sectors (E&Able)."

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