Kumho E&C said on the 15th that operating profit in the first quarter rose 112% from a year earlier to 12.1 billion won. Revenue in the same period fell 3% to 453.4 billion won, but net income surged 1,250% to 10.8 billion won.
Kumho E&C said the improvement in results came as projects with high cost ratios were completed and the share of projects with secured profitability expanded. A company official said, "We are continuing the profitability improvement trend as selective order-taking strategy, stronger on-site management, and interest expense reduction are combined with efforts for solid management."
In particular, Kumho E&C is steadily building a stable business portfolio as it expands public civil engineering and plant projects, including the energy sector such as public housing, private-participation projects, and LNG combined-cycle power plants and power tunnel construction.
Financial soundness is also strengthening due to factors such as improved results and a decline in accounts receivable. Cash and cash equivalents came to 275.6 billion won, up 72% from 160.7 billion won at the end of last year. During the first quarter, it repaid 26.0 billion won in borrowing fund. Borrowing fund totaled 131.1 billion won, down from 157.1 billion won at the end of last year.
A Kumho E&C official said, "We are maintaining a management stance that strengthens both profitability and financial stability," adding, "We plan to continue a stable revenue structure based on cost management and a selective order-taking strategy."