"Reflecting Prolonged COVID-19 Impact" Hyundai Construction Q3 Operating Profit 139.8 Billion KRW...41.5% Decrease YoY

[Asia Economy Reporter Yuri Kim] Hyundai Engineering & Construction announced on the 23rd that its consolidated operating profit for the third quarter of this year was 139.8 billion KRW, a decrease of 41.5% compared to the same period last year.

Sales decreased by 1.1% to 4.0425 trillion KRW, and net profit fell by 61.6% to 83.8 billion KRW.

Hyundai Engineering & Construction explained that the decline in operating profit was influenced by conservative accounting practices in anticipation of the prolonged COVID-19 situation. However, despite the COVID-19 situation, domestic housing performance and the commencement of domestic plant projects such as the improvement work at Hyundai Oilbank refinery helped maintain sales at a level similar to last year.

Cumulative operating profit from the first to third quarter was 459.1 billion KRW, and net profit was 349.8 billion KRW, down 33.4% and 38.2% respectively compared to the same period last year. Cumulative sales for the third quarter reached 12.6455 trillion KRW, nearly the same as the same period last year (a 0.01% decrease).

Orders increased by 22.7% year-on-year to 21.8921 trillion KRW from domestic and overseas projects including the Hong Kong United Christian Hospital construction, the Philippines North-South Railway Section 1 construction, Godeok Gangil apartment complex district, and Daejeon Northern Connection Line Section 2 project. This amount represents approximately 87.2% of this year's annual order target of 25.1 trillion KRW.

The order backlog also maintained 65.5623 trillion KRW, up 16.4% compared to the end of last year. Hyundai Engineering & Construction stated, "We have secured about 3.8 years of stable work."