Daewoo E&C Q1 Operating Profit Reaches 255.6 Billion Won, Up 69% YoY

First Quarter Business Results Announced

Daewoo Engineering & Construction announced on the 28th that its consolidated operating profit for the first quarter of this year reached 255.6 billion won, a 68.9% increase compared to the same period last year.

Sales amounted to 1.9514 trillion won, down 6.0% from the same period last year. Net profit for the period surged by 237.6% to 195.8 billion won. Compared to the market consensus compiled by FN Guide, sales were at a similar level, while both operating profit and net profit significantly outperformed expectations. FN Guide had projected operating profit at about 121.3 billion won and net profit at around 69.3 billion won.

Previously, in the fourth quarter of last year, the company posted a large deficit after reflecting potential losses from unsold units in regional areas and overseas underperforming projects. However, it has now returned to profitability. A company official stated, “Operating profit increased as sites that began during periods of rising construction costs were sequentially completed, leading to improved profitability in the building business segment. While external uncertainties are rising, we plan to achieve this year’s targets through thorough risk management and a focus on high-value-added projects.”

Euljiro Daewoo Construction Headquarters

New orders reached 3.4212 trillion won, up 21.2% from the first quarter of last year. Major domestic orders included the Busan Sajik District 4 redevelopment (792.3 billion won), Cheonan Eopseong 3 A1BL (443.6 billion won), and Seoul Jangwi District 10 redevelopment (417.4 billion won).

As of the end of the first quarter, the order backlog stood at 51.8902 trillion won, securing about 6.4 years’ worth of workload. Based on this, the company plans to further expand into domestic and overseas markets while also strengthening its internal operations. Daewoo Engineering & Construction stated that it intends to increase its share of future energy infrastructure businesses such as nuclear power and liquefied natural gas (LNG), while also focusing on orders for overseas urban development, data centers, and urban renewal projects.

This year, the company plans to concentrate on major projects such as the Czech nuclear power plant, the site development for the new Gadeokdo airport, the Al-Faw port naval base in Iraq, and the Papua New Guinea LNG gas central processing facility (CPF). The company added, “We will actively pursue strengthening our internal management to increase high-quality orders, and we aim to reinforce the foundation for future growth by leveraging our core construction competencies.”

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