GS Geonseol, H1 Operating Profit 302 Billion KRW... 10% Decrease YoY

[Asia Economy Reporter Kim Hyemin] GS Engineering & Construction announced on the 28th that it recorded an operating profit of 302 billion KRW in the first half of this year, a decrease of 10.1% compared to the same period last year.

The company explained that the decline in operating profit compared to the same period last year was due to a one-time cost of approximately 100 billion KRW related to the 'Job Transition Support Program' conducted in the first half. GS Engineering & Construction added, "Even after reflecting this, the operating profit margin for the first half was 7.1%, maintaining the highest level in the industry."

During the same period, sales amounted to 4.246 trillion KRW, down 14.9% compared to the same period last year. GS Engineering & Construction explained, "This was due to most large-scale plant sites being completed." New orders increased by 2.4% to 4.798 trillion KRW. Gross profit, which is sales revenue minus cost of sales, rose 18.1% year-on-year to 705 billion KRW in the first half of this year.

By business division, sales in major sectors such as architecture and housing, plants, and infrastructure declined compared to the first half of last year, but sales in the new business division increased by 52.3% to 358 billion KRW during the same period. This division also led profit growth with a gross profit margin of 18.9%, alongside the architecture and housing division (21.5%).

Looking at the second quarter results alone, sales increased by 10.8% quarter-on-quarter to 2.232 trillion KRW. New orders rose 64.9% during the same period to 2.987 trillion KRW. Operating profit decreased by 29.4%, but excluding one-time costs, it increased by about 27%.

GS Engineering & Construction stated, "We will achieve sustainable growth by prioritizing stable profit trends, focusing on selective orders based on profitability rather than quantitative growth, strengthening the competitiveness of existing businesses, and discovering new growth engines."