Samsung Engineering Q1 Operating Profit 107.3 Billion KRW... Up 25.5% YoY

[Asia Economy Reporter Jeong Hyunjin] Samsung Engineering announced on the 29th that it recorded sales of 1.5308 trillion KRW and an operating profit of 107.3 billion KRW in the first quarter.

Through a preliminary earnings announcement on the same day, Samsung Engineering stated that first-quarter sales fell 3.9% compared to the same period last year, while operating profit increased by 25.5%. The operating profit margin rose by 1.6 percentage points year-on-year to 7.0%. Net profit reached 101.5 billion KRW, up 46.1% compared to the first quarter of last year.

Samsung Engineering explained, "Despite the uncertain external business environment, thorough project profit and loss checks, cost reduction efforts, and close communication with clients improved the profit margin in the petrochemical sector, and the industrial environment sector maintained a stable profit structure."

The order intake for the first quarter was 1.5335 trillion KRW, and by securing a large-scale petrochemical plant order in Saudi Arabia this month, Samsung Engineering said it achieved about 37% of the annual order intake target of 6 trillion KRW. Samsung Engineering expects that the overseas order market, including the Middle East and Southeast Asia, will gradually improve after the second quarter depending on external factors such as oil prices.

The order backlog is approximately 16.6 trillion KRW, securing work equivalent to two and a half years based on last year's sales, a Samsung Engineering official added. Samsung Engineering stated that based on the order backlog, it plans to continuously secure projects through marketing strategies based on technical competitiveness such as Front-End Engineering Design (FEED) and profitability-focused order strategies. It also said it will continue stable growth through continuous project management and sound management, while securing mid- to long-term future growth engines by fostering eco-friendly new businesses based on digital technological innovation and ESG (environment, social, governance) principles.