Achieved a total of 1.3048 trillion KRW from January to June
Overseas 462.4 billion KRW, Domestic 842.4 billion KRW
Ssangyong Engineering & Construction's performance accumulation is remarkable. The contract amount secured in the first half of this year has already exceeded 90% of the total contract amount from the previous year. In particular, the overseas construction business sector achieved results exceeding 12 times the contract amount from the first half of the previous year. Domestic projects, which had been somewhat sluggish until May, are also gaining momentum, with contracts worth over 420 billion KRW (3 projects) secured in June alone.
According to Ssangyong Engineering & Construction on the 9th, the company achieved a contract amount of 1.3048 trillion KRW in the first half of this year (January to June). This figure exceeds 91% of Ssangyong Engineering & Construction's total contract amount of 1.4295 trillion KRW from the previous year. Most notably, the increase in overseas contracts stands out. Ssangyong Engineering & Construction secured 5 overseas contracts in the first half of this year, recording a contract amount of 462.4 billion KRW. This is more than 12 times the 34.2 billion KRW contract amount recorded in the first half of last year, according to the Overseas Construction Comprehensive Information Service contract statistics.
The overseas projects secured by Ssangyong Engineering & Construction include ▲Middle East Dubai KIPAF PLOT6 (contract amount 151.3 billion KRW) ▲Thailand Bangkok Purple Line Subway Construction (4.7 billion KRW) ▲Equatorial Guinea Mongomo Water and Sewage Facility Construction (109.3 billion KRW) ▲United Kingdom Seawind Offshore Wind Monopile Manufacturing Plant Project (5.2 billion KRW) ▲Middle East Dubai KIPAF PLOT 4 Project (191.7 billion KRW).
Expectations are high for continued overseas contract achievements in the second half of the year. Ssangyong Engineering & Construction is also focusing company-wide efforts to expand its overseas performance. Recently, Woo Sang-hee, Executive Director and Head of Overseas Business at HanmiGlobal, has joined the construction sector. Mr. Woo joined Hyundai Engineering & Construction in 1991 and served as site manager for the Singapore South Beach mixed-use development project. At HanmiGlobal, he held positions such as Executive Director of the Global Business Division and Head of the Saudi Arabia branch.
A Ssangyong Engineering & Construction official stated, “In the second half of the year, we plan to focus on projects in the SOC (Social Overhead Capital) sector, such as social infrastructure facilities, by leveraging the business foundation of our parent company, the Global SeAH Group, and utilizing networks in Central and South America, including Costa Rica.”
Domestic contracts are also progressing smoothly. In the first half of this year, Ssangyong Engineering & Construction secured a total of 9 projects worth 842.4 billion KRW, including ▲Hwaseong ASML New Campus Construction (180.4 billion KRW) ▲Sunchang Ingye-Ssangchi (Section 2) Road Facility Improvement (34.3 billion KRW) ▲Myeongil Hyundai Apartment Remodeling (83.4 billion KRW) ▲Busan Yeoncheon Market Maintenance Project (83.3 billion KRW) ▲Mokpo Inner Port Passenger Wharf Construction (25.7 billion KRW) ▲Jangchung-dong Ambassador Hotel Renovation Phase 2 (11.5 billion KRW) ▲Seoul Animation Center Construction (30.7 billion KRW) ▲Pyeongtaek Tongbok-dong Residential Complex New Construction (289.3 billion KRW) ▲Chuncheon Yaksadong Residential Complex New Construction Project (103.5 billion KRW).
Meanwhile, Ssangyong Engineering & Construction's financial soundness is also noticeably improving beyond just contract performance. Supported by funding from the Global SeAH Group, the company has reduced borrowings and lowered its debt ratio. Through Avondale Investment, a special purpose company established in January to acquire the company, a paid-in capital increase of 150 billion KRW was made, increasing equity capital from 112.1 billion KRW at the end of last year to 272.4 billion KRW as of the end of March. During this period, the debt ratio improved from 753% to 251.8%.
In the first quarter of this year, the company recorded an operating profit of 8.9 billion KRW and a net profit of 10.6 billion KRW. This broke the cycle of net losses and operating losses that had continued since 2020.
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