Daelim Industrial Q3 Operating Profit 250 Billion KRW... 12% Increase YoY

COVID-19 and Low Oil Prices Drive Continued Strong Performance in Construction Projects

[Asia Economy Reporter Onyu Lim] Daelim Industrial recorded an operating profit of approximately 250 billion KRW in the third quarter, driven by strong performance in its construction business despite the prolonged COVID-19 pandemic and low oil prices.

On the 29th, Daelim Industrial announced its preliminary earnings, reporting third-quarter IFRS consolidated sales of 2.2219 trillion KRW and operating profit of 249.6 billion KRW. Compared to the same period last year, sales and operating profit increased by 3% and 12%, respectively. As a result, cumulative third-quarter sales reached 7.2333 trillion KRW, and operating profit was 846 billion KRW, up 4% and 11% year-on-year, respectively.

Despite the challenging business environment caused by the COVID-19 crisis and prolonged low oil prices, key financial indicators such as orders, sales, operating profit, and debt ratio improved compared to the previous year.

Daelim Industrial explained, "The strong performance of the construction division continued, along with the additional effect of newly consolidated subsidiaries such as Cariflex." The petrochemical division of Daelim Industrial is also recovering profitability thanks to increased demand. Both Yeochun NCC and Poly Mirae, accounted for under the equity method, saw operating profits rise compared to the same period last year due to strong product sales.

On a consolidated basis, new orders increased by 646% year-on-year to 3.7832 trillion KRW, driven by strong order performance in Daelim Industrial’s housing sector and Daelim Construction. Cumulative new orders for this year also rose 119% compared to the same period last year, reaching 6.8425 trillion KRW. The order backlog at the end of the third quarter stood at 21.2706 trillion KRW.

Net borrowings increased to 620.4 billion KRW compared to the end of last year; however, the consolidated debt ratio improved to 95% due to strong earnings, maintaining the highest level of financial soundness in the construction industry.