Samsung Engineering Reports Operating Profit of 503.3 Billion KRW Last Year... Highest in 9 Years (Comprehensive)

39.3% Increase Year-on-Year... This Year's Operating Profit Target Set at 610 Billion Won

[Asia Economy Reporter Lee Hye-young] Samsung Engineering has achieved its highest operating profit in nine years last year.

Samsung Engineering announced on the 27th that its consolidated operating profit for last year was tentatively estimated at 503.3 billion KRW, a 39.3% increase compared to the previous year. This is the best performance since 2012 (732.3 billion KRW).

Sales increased by 10.9% year-on-year to 7.4867 trillion KRW, and net profit rose by 39.2% to 351.1 billion KRW.

Operating profit in the fourth quarter of last year was 106.7 billion KRW, up 33.9% compared to the same period last year. Sales and net profit recorded 2.5135 trillion KRW and 57.9 billion KRW respectively, increasing by 35.5% and 20.7% compared to the same period last year.

The company explained, "The innovation achievements in business execution such as automation, modularization, and pre-confirmation systems contributed to maintaining solid performance," adding, "The sales of high-quality overseas petrochemical projects won through FEED (Front-End Engineering Design) - EPC (Engineering, Procurement, and Construction) linkage were fully reflected in last year's performance, improving profitability, and the industrial environment sector also maintained a stable profit structure."

New orders in the fourth quarter amounted to 2.6667 trillion KRW, and the cumulative total for last year was about 7 trillion KRW.

This exceeded all of Samsung Engineering's initial annual targets of 6 trillion KRW in orders, 6.8 trillion KRW in sales, and 390 billion KRW in operating profit.

The order backlog stood at approximately 16.4 trillion KRW, securing work equivalent to 2 years and 2 months based on last year's sales, Samsung Engineering added.

Through the 2022 management outlook disclosure, Samsung Engineering set targets for this year of 8 trillion KRW in orders, 8.5 trillion KRW in sales, and 610 billion KRW in operating profit. In particular, it plans to secure 17 new basic design projects in orders and achieve half of the petrochemical order target through FEED-EPC linked projects.

Samsung Engineering emphasized, "We will expand orders by selectively securing high-quality projects and orders based on differentiated technological competitiveness," and added, "We will maximize profitability through innovation in EPC execution and accelerate new businesses based on Environment, Social, and Governance (ESG) to achieve sustainable growth."