Last Year's Sales 11.6478 Trillion KRW, 11.8% Increase from Previous Year
New Orders 13.2096 Trillion KRW, Exceeding Target
Daewoo Engineering & Construction recorded an operating profit of 662.5 billion KRW last year, a 12.8% decrease compared to the previous year (760 billion KRW).
According to the preliminary consolidated management performance results announced by Daewoo Engineering & Construction on the 30th, last year's sales reached 11.6478 trillion KRW, an 11.8% increase compared to the previous year.
By business segment, the housing construction division posted sales of 7.2051 trillion KRW, the civil engineering division 2.4151 trillion KRW, the plant division 1.6202 trillion KRW, and consolidated subsidiaries conducting projects such as the Vietnam Hanoi THT development project recorded sales of 407.4 billion KRW.
Net profit for the period was 521.5 billion KRW, a 2.7% increase compared to the previous year's result (508 billion KRW). A Daewoo Engineering & Construction official explained, “We exceeded our business plan due to sales growth in the housing construction division based on already sold projects and continued sales contributions from the Iraq Al Faw project and Nigeria LNG Train 7 project.”
He added, “Although the housing construction division continues to face cost rate burdens and operating profit decreased compared to the same period last year due to the base effect from the expanded performance of the Vietnam THT corporation in 2022, we performed well despite difficult domestic and international conditions thanks to steady growth in high-profit projects in the civil engineering and plant divisions.”
Daewoo Engineering & Construction’s new orders last year totaled 13.2096 trillion KRW, exceeding the original target of 12.3 trillion KRW. The company currently holds an order backlog of 45.1338 trillion KRW, securing 3.9 years’ worth of work relative to annual sales.
A Daewoo Engineering & Construction official stated, “We exceeded our business plan through domestic self-developed projects such as the Busan Beomil-dong project (1.6 trillion KRW), Seoul Sinjeong 4 district reconstruction, and urban renewal project orders, as well as large-scale overseas orders including the Libya Fast Track project (1 trillion KRW) and the Nigeria Kaduna refinery project (670 billion KRW).”
Daewoo Engineering & Construction also announced its 2024 outlook with sales of 10.4 trillion KRW and new orders of 11.5 trillion KRW. A company official said, “We have established a somewhat conservative business plan due to the real estate market downturn, but we believe achieving the target is possible through steady sales from large civil engineering and plant sites and continuous sales from the housing construction division, which will supply 19,584 housing units.”
He continued, “We will expand urban renewal projects and continue to secure quality orders not only in overseas key countries such as the Libya reconstruction project and Iraq Al Faw port project but also through active entry into new countries, aiming to exceed this year’s targets.”
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