Daewoo E&C’s Q1 OP down 35% amid rising costs
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According to the company’s preliminary results, its operating profit stood at 114.8 billion won ($83.3 million) for the January-March period, down 35 percent from a year earlier.
Sales amounted to 2.48 trillion won, down 4.6 percent and net profit fell by 6.9 percent to 91.5 billion won.
By business segment, Daewoo E&C posted sales of 1.59 trillion won in the housing construction sector, 547.8 billion won in civil engineering, 272 billion won in plant construction, and 69.8 billion won in other affiliated sectors.
In terms of new orders received during the first quarter, Daewoo E&C secured contracts worth 2.48 trillion won.
Major projects included the Incheon Ultra-Low Temperature Logistics Center (448.2 billion won), the supply of major equipment and auxiliary facilities for the Gongju Natural Gas Power Plant (209.1 billion won), and the reinforcement work for the harbor structures of the Kori Nuclear Power Plant (27 billion won).
The company also secured low-risk housing projects such as the redevelopment of the Suji 1 District in Seongnam (779.3 billion won) and the public housing project around a military unit in Daebang-dong, Seoul with private sector participation (153 billion won).
Currently, the company’s order backlog stands at 45.67 trillion won, equivalent to approximately 3.9 years’ worth of revenue based on annual sales.
“While actively pursuing urban development projects, we are also focusing on securing highly profitable overseas projects in regions such as Iraq, Libya, and the Czech Republic, where we participate as a constructor in large-scale nuclear power plant projects led by Team Korea,” said a company spokesperson.
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