Refer Report
Daewoo Engineering & Construction announced on the 30th that it recorded sales of 2.5478 trillion won, operating profit of 62.3 billion won, and net profit of 40.3 billion won in the third quarter of this year.
Sales of KRW 2.5478 trillion are a 14.8% decrease compared to the same period last year (KRW 2.9901 trillion). By business division, sales of △Housing Construction Business Division were KRW 1.6434 trillion, △Civil Engineering Business Division was KRW 516.4 billion, △Plant Business Division was KRW 289.4 billion, and △Other Consolidated Subsidiaries recorded sales of KRW 98.6 billion.
Operating profit in the third quarter was KRW 62.3 billion, a 67.2% decrease from the same period last year (KRW 190.2 billion). A Daewoo E&C official said, “Sales and operating profit have decreased due to a decrease in the number of sites in progress, a continued increase in the cost ratio, and the reflection of temporary additional costs at some sites,” adding, “We are focusing on the start of construction of projects that have already been ordered and large sites with solid profitability, such as the Nigeria site.” “We plan to improve profitability by increasing sales,” he said.
Cumulative new orders in the third quarter amounted to KRW 7.3722 trillion, achieving 64.1% of the annual order target of KRW 11.5 trillion. It won orders for a residential-commercial complex in Namcheon-dong, Busan (KRW 633.3 billion), Hanam Gyosan and Namyangju Wangsuk Package (KRW 377.2 billion), and Sinbanpo 16th (KRW 246.9 billion). As of the end of the third quarter, it had an order backlog of 44.7777 trillion won. This corresponds to 3.8 years’ worth of work compared to annual sales.
Despite factors such as rising costs and reflection of temporary expenses, Daewoo E&C plans to continue to improve its structure and strengthen its internal stability for sustainable growth. Daewoo E&C was selected as a construction company in the Gangnam and Seocho-gu areas of Seoul, including Gaepo Jugong Complex 5 and Shinbanpo 16th Complex, and is carrying out highly profitable projects in the non-housing sector such as the new construction of the G-TOWN development project in Gwacheon Knowledge Information Town and the Dongbu Expressway underground project. We have begun construction and are working to diversify our business portfolio. We have also succeeded in pioneering the Turkmenistan market overseas, and are continuing our efforts to lay the foundation for mid- to long-term growth by starting additional overseas urban development projects after the Star Lake New City in Vietnam.
A company official said, “We are seeing visible results in overseas markets, such as being recently selected as the successful bidder for the 1 trillion won mineral fertilizer plant project in Turkmenistan and receiving approval as an investor in the Kien Giang New Town Development Project in Thai Binh Province in Vietnam.” He added, “In the second half of the year, we are producing visible results in Nigeria, “We will focus our capabilities on receiving quality orders and managing risks in major overseas base countries such as Iraq and Vietnam,” he said.
Reporter Ahn Jeong-rak jran@hankyung.com
Source: Korean