Samsung Engineering Reports 79.7 Billion KRW Operating Profit in 4Q Last Year, Up 19.5% YoY (Update)

[Asia Economy Reporter Kim Heung-soon] Despite uncertain external conditions, Samsung Engineering recorded increases in sales, operating profit, and net profit in the fourth quarter of last year compared to the previous year.

Samsung Engineering announced on the 28th that its consolidated sales for the fourth quarter of last year reached 1.8552 trillion KRW, operating profit was 79.7 billion KRW, and net profit was 47.9 billion KRW. Compared to the same period last year, sales increased by 5.7%, operating profit by 19.5%, and net profit by 1.5%.

Annual sales for last year totaled 6.7251 trillion KRW, and operating profit was 351 billion KRW. Sales increased by 5.6% compared to the previous year, while operating profit decreased by 8.9%. Both the annual sales forecast of 6 trillion KRW and operating profit forecast of 340 billion KRW were exceeded. Net profit was 244.5 billion KRW, down 17.3%.

New orders in 2020 reached 9.6 trillion KRW, an increase of 36.2% from the previous year. The company explained that this was the result of EPC-linked orders based on preliminary work such as FEED (Front-End Engineering Design) for the Dos Bocas refinery in Mexico and the Sarawak methanol project in Malaysia.

Additionally, by securing orders for domestic bio plants and a battery foil plant in Hungary, the order backlog reached approximately 16.4 trillion KRW. This is the largest scale since 2012.

Through its management outlook disclosure this year, Samsung Engineering projected orders of 6 trillion KRW, sales of 6.8 trillion KRW, and operating profit of 390 billion KRW. The company stated, "Despite difficult external conditions, we plan to continue stable growth by focusing on profitability-centered management based on a substantial order backlog. We will enhance productivity and efficiency through digital technological innovation and strengthen the foundation for mid- to long-term sustainable growth by fostering new businesses such as green infrastructure, energy optimization, and commercialization of technological innovation solutions."