Daewoo E&C on a Roll... Secured Orders Worth Over 4 Trillion Won in Q1 Alone

Daewoo E&C achieved over 4 trillion KRW in orders in the first quarter, centered on its plant business.

Daewoo E&C announced on the 27th that it had secured new orders worth 4.1704 trillion KRW in the first quarter on a preliminary basis. This represents a sharp increase of 56.9% compared to 2.6585 trillion KRW in the same period last year. In particular, the plant business division secured 1.8058 trillion KRW in orders, achieving the annual overseas order target of 1.8 trillion KRW in just one quarter. Daewoo E&C's order backlog currently stands at 45.9283 trillion KRW, which corresponds to 4.4 years' worth of work relative to annual sales.

Sales are preliminarily estimated at 2.6801 trillion KRW, up 15.9% from 2.2495 trillion KRW in the same period last year. By business division, sales were ▲1.6033 trillion KRW in the housing construction division ▲526.9 billion KRW in the civil engineering division ▲382.8 billion KRW in the plant business division ▲95.1 billion KRW in other consolidated subsidiaries.

Operating profit was 176.7 billion KRW, down 20.2% from 221.3 billion KRW in the same period last year. Net profit also decreased by 43.4% to 98.3 billion KRW compared to 173.6 billion KRW in the previous year’s first quarter.

Daewoo E&C Euljiro Headquarters [Image source=Daewoo E&C]

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A Daewoo E&C official stated, “Sales increased due to progress in overseas large-scale projects such as the Iraq Al Faw PJ in the civil engineering division and the Nigeria LNG Train 7 PJ in the plant business division, accelerating work progress and revenue recognition.” He added, “Although operating profit declined due to a base effect from temporarily high performance in the first quarter last year and a sharp rise in cost ratios in the housing construction division, the operating profit exceeded the expected 160.3 billion KRW, and continuous growth and profitability expansion are expected in the non-housing sectors.”

It is particularly encouraging that the financial structure is continuously improving. The debt ratio in the first quarter was 184.5%, improving by 14.6 percentage points compared to 199.1% at the end of last year.

A Daewoo E&C official said, “Starting with large-scale orders such as the emergency repair work for the Nigeria Kaduna refinery and the Libya Fast Track power plant project, we are preparing follow-up orders in key hub countries including additional work at Iraq Al Faw, the third phase of the Nigeria Indorama fertilizer plant, and Libya’s power and SOC infrastructure restoration projects.” He added, “We also plan to focus our capabilities on securing public construction orders domestically, such as Shinhanul Units 3 and 4 and the undergrounding of National Road 47 in Namyangju Wangsuk, expecting continuous sales growth and achievement of this year’s order targets.”

He continued, “We will continue to expand stable profitability by composing a balanced business portfolio rather than focusing solely on the housing sector,” and added, “We will do our best to exceed this year’s goals through synergy with the major shareholder, the Joongheung Group.”

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