Doosan Heavy Q2 Operating Profit 254.6 Billion KRW... SMR Investment Up, Maintains Q2 Profitability (Comprehensive)

[Asia Economy Reporter Jang Sehee] Doosan Heavy Industries & Construction continued its profit trend in the second quarter of this year as domestic and overseas orders increased consecutively.

Doosan Heavy Industries & Construction announced on the 28th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 254.6 billion KRW, turning to profit compared to the same period last year (operating loss of 140.3 billion KRW).

Sales increased by 11.69% compared to the same period last year, reaching 2.9006 trillion KRW. Net profit also turned positive at 202 billion KRW.

The performance of Doosan Infracore, which was sold to Hyundai Heavy Industries Group, has not been reflected in Doosan Heavy Industries & Construction’s financial statements since the second quarter of this year.

Doosan Heavy Industries & Construction, which saw its performance plummet last year due to COVID-19 and financial structure improvements, posted both operating profit and net profit in the second quarter following the first quarter of this year.

Sales increased due to exceeding the planned progress of large domestic and overseas EPC (Engineering, Procurement, and Construction) projects, and profitability improved as the financial structure got better.

Additionally, by securing large-scale service and equipment projects domestically and internationally, such as the Saudi Yanbu 4 seawater desalination plant, orders in the first half of this year recorded 2.3202 trillion KRW, a 26.2% increase compared to the same period last year.

The scale of projects expected to be ordered in the second half of the year also reaches 3.6 trillion KRW.

Adding the annual service and equipment orders worth 2.1 trillion KRW, Doosan Heavy Industries & Construction expects that achieving this year’s order target of 8.6 trillion KRW seems feasible.

The improvement in Doosan Heavy Industries & Construction’s performance is expected to continue for the time being. This is because the construction of next-generation energy source Small Modular Reactors (SMR), in which Doosan Heavy Industries & Construction is investing, is becoming visible in line with global carbon neutrality policies.

Furthermore, results are also anticipated from eco-friendly energy businesses such as offshore wind power, gas turbines, and hydrogen, which Doosan Heavy Industries & Construction is intensively fostering.

Meanwhile, Doosan Heavy Industries & Construction’s debt ratio has decreased by 35.2 percentage points and 35.6 percentage points compared to the end of last year on a separate basis and consolidated basis, respectively.