The profitability of Samsung C&T's construction institutional sector halved in the second quarter. The completion of large-scale projects such as high-tech ones and the increase in marketing expense in the dwellings sector affected profitability.
Samsung C&T reported on the 30th that its operating profit for the second quarter was 118 billion won, a 58.3% decrease compared to the same period last year (283 billion won).
Sales during the same period amounted to 3.39 trillion won, a 30.9% decrease from the same period last year (4.91 trillion won).
Compared to the previous quarter, sales and operating profit decreased by 6.2% and 25.8%, respectively.
Samsung C&T explained that the scale of revenue and operating profit decreased due to the completion of large-scale projects, including high-tech ones, and that expenses in the dwellings sector influenced the decrease in operating profit.
Samsung C&T seems to have seen its profitability decline due to the completion of large domestic and international projects and the reduction of high-tech construction volumes. Projects such as the Saudi Metro and UAE (United Arab Emirates) Fujairah combined cycle power have been completed. The reduced order volume from group companies, such as Samsung Electronics, also appears to have had an impact.
The second quarter order results for Samsung C&T amounted to 1.389 trillion won. The order backlog is 25.506 trillion won.
Samsung C&T secured contracts in the second quarter for the Nawaere BESS in Australia (200 billion won), the improvement project for Unit 1 at a nuclear power plant in Romania (100 billion won), Samsung Electro-Mechanics' P6 in the Philippines (200 billion won), and Samsung Display's Cheonan C-line (100 billion won).
In the second quarter, it secured dwellings construction rights worth 2.2 trillion won, including Jangwi 8 District (1.2 trillion won), Ulsan Nam-gu B-04 (700 billion won), and Gwangnaru Hyundai (300 billion won).
Meanwhile, Samsung C&T's total sales for the second quarter reached 10.022 trillion won, and operating profit was recorded at 753 billion won.