Doosan Enerbility reports robust Q3 earnings, buoyant on reactor boon

South Korea’s Doosan Enerbility reported robust earnings in the third quarter on stronger demand for power plants and factories due to energy demand around the world and expects boon on nuclear front on rising possibility of Korea winning reactor project in Poland after winning reactor equipment order from Egypt.

According to the firm’s regulatory filing on Tuesday, its operating profit rose 40.7 percent from a year ago to 314.6 billion ($221.79 million) in the third quarter, while its revenue increased by 35.2 percent to 3.96 trillion won.

The company won a series of large-scale engineering, procurement, and construction projects at home and abroad. Construction equipment unit Doosan Bobcat contributed to the bottom line with record earnings in the third quarter.

Energy infrastructure orders reached 4.79 trillion won as of September, up 62 percent from a year ago. The largest project it won was the deal worth $834 million to build a casting and forging plant in Saudi Arabia.

Formerly Doosan Heavy Industries which teetered on the brink of bankruptcy amid the phase-out from fossil fuel and nuclear-powered power generators under the previous gove4rnment has regained confidence on the surge of orders since it was rebranded. It won orders of 4.6 trillion won in 2020, 6.3 trillion won in 2021, and 7.9 trillion in 2022. Backlog has reached 14.61 trillion won as of the third quarter.

The primary reactor equipment builder will be responsible for the turbine building order from Egypt. It can anticipate windfall if Korea Hydro & Nuclear Power (KHNP) wins the private-led reactor project in Poland.

Its shares were down 7.57 percent at 14,650 won Wednesday after surging nearly 20 percent on the previous day.

By Seong Seung-hoon and Jenny Lee