Samsung Engineering Q2 Operating Profit 150.3 Billion KRW... Up 84.2% YoY

[Asia Economy Reporter Jeong Hyunjin] Samsung Engineering continued its strong performance by recording an operating profit of 150.3 billion KRW in the second quarter of this year.

Samsung Engineering announced on the 29th through a preliminary earnings report that it recorded sales of 1.6958 trillion KRW, operating profit of 150.3 billion KRW, and net profit of 93.8 billion KRW in the second quarter of this year. Compared to the same period last year, sales increased by 1.5%, and operating profit and net profit rose by 84.2% and 46.0%, respectively. With this, Samsung Engineering has maintained a profit streak for 18 consecutive quarters.

Samsung Engineering explained, "Despite uncertain external conditions, we achieved a high operating profit margin of 8.9% by focusing on profitability-centered project management and cost reduction efforts through EPC (Engineering, Procurement, and Construction) execution innovation, surpassing market expectations (around 90 billion KRW)." It added, "The recent high-quality overseas project orders, linked through FEED (Front-End Engineering Design) and EPC, have been fully reflected in the performance, improving results in the petrochemical sector, while the industrial environment sector also maintained a stable profit structure."

For the first half of the year, Samsung Engineering recorded sales of 3.2266 trillion KRW, operating profit of 257.6 billion KRW, and net profit of 195.3 billion KRW. Orders received amounted to 1.5935 trillion KRW in the second quarter and totaled 3.127 trillion KRW for the first half, achieving more than half of the annual order target of 6 trillion KRW. The order backlog stands at 16.4 trillion KRW, securing 2.5 years’ worth of work based on last year’s sales. Samsung Engineering expects global industry conditions to improve with the recovery of oil prices and anticipates steady order performance centered on the Middle East and Southeast Asia regions.

A Samsung Engineering official stated, "In the second half, we plan to continue stable growth by focusing on project management and sound management," adding, "We will enhance productivity and efficiency through digital technology innovation and continuously discover new ESG (Environmental, Social, and Governance) businesses such as green infrastructure, carbon neutrality, and hydrogen projects to establish a stable profit base and secure future growth engines."