Daewoo Engineering & Construction said on the 28th that it posted 255.6 billion won in net income on a consolidation basis for the first quarter of this year. That was up 68.9% from a year earlier. Operating profit was 195.8 billion won, up 237.6% over the same period.
The figure far exceeds the market consensus based on FnGuide (operating profit 121.3 billion won, net income 69.3 billion won). Results appear to have improved after the company carried out a so-called "big bath" to clear accumulated bad assets at once last year.
Revenue fell 6% from a year earlier to 1.9514 trillion won. By business segment: ▲ building business segment 1.2732 trillion won ▲ civil engineering business segment 350.6 billion won ▲ plant business segment 284 billion won ▲ other consolidated subsidiaries 43.6 billion won.
A Daewoo Engineering & Construction official said, "Operating profit increased as sites that began during a period of rising construction costs were completed one after another, improving profitability in the building business," and added, "External uncertainties are growing, including geopolitical risks in the Middle East, but we will achieve this year's targets through thorough risk management and performance driven by high value-added projects."
New orders in the first quarter of this year came to 3.4212 trillion won, up 21.2% from a year earlier. Domestic orders accounted for most of the total, including the Busan Sajik District 4 redevelopment (792.3 billion won), Cheonan Upseong 3 A1BL (443.6 billion won), and Seoul Jangwi District 10 redevelopment (417.4 billion won). In particular, the order backlog for the urban redevelopment business segment accounted for a high share at about 2.3629 trillion won.
Daewoo Engineering & Construction plans to diversify its business portfolio by increasing the share of future energy infrastructure businesses where it has competitiveness, such as nuclear power and LNG, while also focusing on winning overseas urban development, data center, and urban redevelopment projects. In addition, it plans to concentrate on securing large-scale projects this year, including the Czech nuclear power project and the site development for the new Gadukdo airport, as well as the Al Faw port naval base in Iraq and the Papua New Guinea LNG CPF (central processing facility).