[Exclusive] "What a Miss, Hyundai Engineering & Construction"... Secured Final 1.5 Trillion Won Contract but Ranked 2nd in Overseas Performance

Performance Reflection Based on Order Recognition Criteria Delayed to January Next Year
Samsung C&T Virtually Secures 1st Place in 2023 Overseas Orders

Hyundai Engineering & Construction (Hyundai E&C) has narrowly missed securing the top spot in overseas orders this year. On the 15th, it won a large-scale project worth $1.1841 billion (approximately 1.5 trillion KRW) in Saudi Arabia, positioning itself to claim the title of No. 1 in overseas construction orders for the first time in four years. However, as the recognition of this achievement is postponed to next year, Samsung C&T has maintained its No. 1 position for this year as well, following last year.

Hyundai Construction Gyedong Office Building. [Photo by Hyundai Construction]

According to the Financial Supervisory Service's electronic disclosure system on the 19th, Hyundai E&C signed a contract on the 15th with Saudi Aramco, the Saudi state-owned company, for the second phase expansion of the gas plant in the Jafurah region of Saudi Arabia, together with Hyundai Engineering. The announcement of the order was made on the 18th. The equity contract was signed with a 50-50 split between Hyundai E&C and Hyundai Engineering, with each company’s contract amount totaling $1.1841 billion.

If the second phase expansion of the Saudi Jafurah gas plant is reflected in this year’s order performance, Hyundai E&C would surpass Samsung C&T to become the top domestic construction company in overseas orders. However, Hyundai E&C’s contract will not be included in this year’s order volume due to differences in the timing of disclosure and order recognition standards. The order recognition is scheduled for January next year.

Up to last month this year, Hyundai E&C has achieved a total overseas project order volume of $5.75799 billion. Of this, five new projects accounted for $5.2547 billion, with the remainder reflecting increases in existing orders.

Currently, Samsung C&T holds the top position with a total of $6.9421 billion, having secured $5.77969 billion in orders through the third quarter of this year. According to industry sources, Samsung C&T also signed one undisclosed overseas order contract in the fourth quarter, but it is reported to be below the trillion KRW level.

For Hyundai E&C, the opportunity to reclaim the No. 1 spot after four years has slipped away. According to the Overseas Construction Integrated Information Service (OCIS), Hyundai E&C ranked first in 2019 with overseas orders of $4.16161 billion, then recorded $6.45462 billion (2nd place) in 2020, $3.38927 billion (3rd place) in 2021, and $2.69505 billion (4th place) in 2022. Meanwhile, Samsung C&T has held the No. 1 position for two consecutive years since 2021, with $6.9685 billion in orders.

However, the industry highly values Hyundai E&C’s overseas order volume more than doubling from $2.7 billion last year to this year.

An executive in charge of overseas business at a major construction company said, "Hyundai E&C had reduced its overseas business share over the past few years as it focused its capabilities on domestic housing projects, especially redevelopment and reconstruction urban renewal projects. However, its overseas network and technological capabilities remain among the best in the domestic construction industry. As Hyundai E&C turns its attention back to overseas markets due to the downturn in the domestic construction market, it is expected to reclaim the No. 1 position next year."