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% in the same period.
That far exceeds the market consensus under FnGuide (operating profit 121.3 billion won, net income 69.3 billion won). Results appear to have improved after carrying out a so-called "big bath" to clean up accumulated bad assets from last year at once.
Revenue fell 6% from a year earlier to 1.9514 trillion won. By business segment: ▲ building business division 1.2732 trillion won ▲ civil engineering business division 350.6 billion won ▲ plant business division 284 billion won ▲ other consolidation subsidiaries 43.6 billion won in revenue.
A Daewoo Engineering & Construction official said, "Operating profit increased as profitability in the building business improved, with sites that started during a period of rising construction costs being completed in sequence," adding, "External uncertainties, including geopolitical risks in the Middle East, are growing, but we will achieve this year's goals through thorough risk management and by driving performance with high value-added projects."
New orders in the first quarter 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).
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 orders for overseas urban development projects, data centers, and urban renewal projects. In addition, it plans to focus on securing large-scale projects this year, including the Czech nuclear power project and the site preparation work for the new airport in Gadeokdo, as well as the Al-Faw port naval base in Iraq and the Papua New Guinea LNG CPF (central processing facility).