Samsung Engineering Q3 Operating Profit 139 Billion KRW... Up 24.1% YoY

[Asia Economy Reporter Jeong Hyunjin] Samsung Engineering announced on the 28th that it recorded sales of 1.7466 trillion KRW and an operating profit of 139 billion KRW in the third quarter of this year, surpassing its annual operating profit target within three quarters on a cumulative basis.

Samsung Engineering stated through its preliminary earnings announcement on the 28th that this year's sales and operating profit increased by 7.3% and 24.1%, respectively, compared to the same period last year. The net profit for the third quarter of this year was 97.9 billion KRW, up 42.6% from the same period last year.

On a cumulative basis for the third quarter, sales reached 4.9732 trillion KRW, operating profit 396.6 billion KRW, and net profit 293.2 billion KRW, exceeding the annual operating profit target of 390 billion KRW within three quarters.

Samsung Engineering explained, "Profitability in the petrochemical plant sector improved through cost reduction efforts via EPC (Engineering, Procurement, and Construction) execution innovation and thorough project management, and the industrial environment plant sector also maintained a stable profit structure, showing solid performance trends."

Third-quarter orders amounted to 1.25 trillion KRW, and the cumulative orders for this year reached 4.377 trillion KRW. Accordingly, the order backlog stood at 16.4 trillion KRW, securing 2.5 years' worth of work based on last year's sales. Samsung Engineering expects steady order performance centered on the Middle East and Southeast Asia regions due to the recovery of oil prices and improvement in the global business environment, and plans to continuously pursue an EPC-linked order strategy through participation in FEED (Front-End Engineering Design).

Samsung Engineering added, "In the fourth quarter, we plan to continue stable growth by focusing on profitability management based on a rich order backlog," and "We will enhance EPC competitiveness by improving productivity and efficiency through digital technological innovation and continue to discover new ESG-based businesses to strengthen the foundation for mid- to long-term sustainable growth."