DL E&C, 29 Billion KRW Share Buyback...Keeps Promise of Shareholder Returns

[Asia Economy Reporter Kim Min-young] DL E&C announced on the 27th that it held a board meeting on the 26th and decided to repurchase its own shares. The scale of the share repurchase is a total of 29 billion KRW, which corresponds to 5% of the 2021 consolidated controlling shareholder net profit (576.4 billion KRW).

DL E&C decided to repurchase its own shares on this day to faithfully implement the shareholder return policy previously promised. At the time of the corporate split last year, DL E&C expressed its intention to enhance shareholder value by expanding shareholder returns. In particular, it presented a concrete plan to return 10% of the controlling shareholder net profit to shareholders as cash dividends and to use 5% for share repurchases over the next three years.

At the shareholders' meeting in March this year, DL E&C decided on a cash dividend of 2,700 KRW per common share (2,750 KRW per preferred share). The total dividend amount is 58 billion KRW, which corresponds to 10% of the 2021 consolidated controlling shareholder net profit (576.4 billion KRW).

Separately, DL E&C announced a plan for a 100% stock dividend, allocating one new share for each existing share, through a board meeting on the same day. By increasing the number of issued shares through the stock dividend, the company aims to enhance stock price elasticity so that the company's intrinsic value is actively reflected in the stock price.

Following the expansion of dividends and the 100% stock dividend, DL E&C, which decided on a 29 billion KRW share repurchase on this day, plans to continue faithfully implementing the mid- to long-term shareholder return policy and continuously enhance shareholder value.

A DL E&C official said, "With strong fundamental strength and profit management capabilities, we will effectively respond to risks arising from the recent rapid rise in raw material prices," and added, "We will also pursue sustainable growth by quickly establishing future growth engines centered on eco-friendly new businesses such as CCUS (Carbon Capture, Utilization, and Storage)."