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

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

Revenue totaled 1.9514 trillion won, down 6.0% year-on-year. Net profit for the period soared by 237.6% to 195.8 billion won. Compared to the market consensus surveyed by FN Guide, revenue was at a similar level, but both operating profit and net profit far exceeded expectations. FN Guide had forecast an operating profit of approximately 121.3 billion won and a net profit of about 69.3 billion won.

Previously, when closing last year's fourth quarter results, the company recorded a large deficit by reflecting the impact of unsold units in provincial areas and potential losses from underperforming overseas projects. However, it has now returned to profitability. A company representative explained, "Operating profit increased thanks to improved profitability in the construction business, as projects that started during periods of rising construction costs have been gradually completed." The representative added, "Although external uncertainties are growing, we will achieve this year's targets through thorough risk management and a focus on high value-added projects that drive our performance."

Euljiro Daewoo Construction Headquarters

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New orders amounted to 3.4212 trillion won, up 21.2% from the first quarter of last year. The company secured substantial domestic contracts, including the Busan Sajik District 4 redevelopment project (792.3 billion won), Cheonan Upseong 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 for the urban redevelopment division stood at 2.3629 trillion won, accounting for more than half of domestic construction orders.

As of the end of the first quarter, the company had an order backlog of 51.8902 trillion won, securing enough work for 6.4 years. Based on this, the company plans to expand in both domestic and overseas markets while also strengthening its internal stability. It will increase the proportion of future energy infrastructure projects, such as nuclear power and liquefied natural gas (LNG), and focus on winning overseas urban development, data center, and urban redevelopment projects.

This year, the company plans to focus on large-scale projects, including the Czech nuclear power plant, the site preparation for the new Gadeokdo Airport, the Al Faw Naval Base in Iraq, and the Papua New Guinea LNG Central Processing Facility (CPF). Daewoo Engineering & Construction stated, "We will actively work to increase high-quality orders by strengthening internal management and enhance the foundation for future growth based on our core competitive strengths."

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