Daewoo E&C reported on the 29th that it recorded a provisional sales amount of 4.35 trillion won and an operating profit of 233.5 billion won in the first half of this year.
Sales decreased by 18.1% compared to the first half of last year, but operating profit increased by 6.3%.
In the second quarter, sales amounted to 2.2733 trillion won, a 19.4% decrease from the same period last year, and operating profit recorded 82.2 billion won, down 21.6%.
A Daewoo E&C official noted, "Although sales decreased due to a reduction in the number of sites, projects that started during a time of rising construction costs are being completed sequentially, and operating profit increased due to improvements in the profitability of the institutional sector of dwellings." He added, "Despite a difficult construction management environment, we focused on sound management, achieving an operating profit margin of 5.4%, which is a 1.3 percentage points increase compared to the same period last year."
In the first half of the year, Daewoo E&C achieved a sales realization rate of 51.8% of its annual plan, driven by solid performance at major domestic housing construction sites such as Baekun Lake Prugio, Yeongtong Prugio Fineber, and Gangnam Data Center, as well as projects in Iraq and Nigeria.
By business segment, sales were ▲2.8573 trillion won for the dwellings institutional sector ▲842.3 billion won for the civil engineering institutional sector ▲485.6 billion won for the plant institutional sector ▲164.8 billion won for other consolidated subsidiaries.
New orders for the first half of the year totaled 5.8224 trillion won, an increase of 32.3% compared to the same period last year (4.4008 trillion won). In the first quarter, this included the reconstruction of Gangpo Jugong Apartment Complex 5 in Seoul (697 billion won) and the Incheon Cheongna International Business District B1BL Officetel (479.5 billion won), while in the second quarter, the trend continued with projects such as the Turkmenistan Mineral Fertilizer Plant (940.1 billion won), the Seoul Yeongdeungpo District 1-11 Urban Environment Improvement Project (510.3 billion won), and the Songmu Station B3BL Apartment (358.3 billion won).
As of the end of the first half, the order backlog reached 44.9933 trillion won, securing about 4.3 years' worth of work compared to annual sales. In particular, the order backlog for the urban renewal projects institutional sector accounted for the largest share at 20.915 trillion won.
Daewoo E&C expects to see significant opportunities for securing large overseas projects in the second half of the year, including a nuclear power project in the Czech Republic, the Al Faw Naval and Air Force Base in Iraq, and the development of the Kien Giang New City in Vietnam.
A Daewoo E&C official noted, "Large overseas projects prepared for this second half are expected to come to fruition," adding, "We will also expand our housing construction activities, focusing on well-received sales in the metropolitan area, and concentrate on winning key urban renewal projects to exceed this year's goals."