Hyundai Construction's Operating Profit Last Year 549 Billion KRW... 36.1% Decrease Compared to Previous Year

Last Year's Orders Amounted to 27.159 Trillion Won... Up 12%
This Year's Sales Target Raised by 10% Compared to Last Year

[Asia Economy Reporter Je Moon-won] Hyundai Engineering & Construction announced on the 22nd that its operating profit on a consolidated basis for last year was tentatively estimated at 549 billion KRW, a decrease of 36.1% compared to the previous year.

Sales amounted to 16.9709 trillion KRW, down 1.8% from the previous year. Net profit fell 60.3% to 227.7 billion KRW.

In the fourth quarter of last year, sales recorded 4.3253 trillion KRW, and operating profit was 89.9 billion KRW. Compared to the same period last year, sales decreased by 6.6% and operating profit by 47.2%. Net loss was 122.1 billion KRW.

Due to delays in domestic and overseas construction caused by the spread of the novel coronavirus disease (COVID-19) last year, Hyundai Engineering & Construction conservatively accounted for increased direct and indirect costs in advance, resulting in a decrease in operating profit.

Last year's order amount totaled 27.159 trillion KRW, an increase of 12.0% compared to 24.2521 trillion KRW in the previous year.

This was influenced by overseas projects such as the Iraq Basra refinery upgrading facility construction and Panama Metro Line 3 construction, as well as urban maintenance projects including the Seoul Hannam 3 District redevelopment project, which is considered the largest redevelopment project to date.

The order backlog totaled 66.6718 trillion KRW, an increase of 18.4% compared to the end of the previous year.

Hyundai Engineering & Construction set a management goal to achieve sales of 18.7 trillion KRW, an increase of 10.2% from the previous year. The new order target is 25.4 trillion KRW, down 6.5% from the previous year.