Ssangyong Construction Returns to Profit After 4 Years

Completion of Dubai Atlantis The Royal, Construction Cost Increase, and
Net Profit of 35.9 Billion KRW Achieved
Business Normalization After Integration into Global Sea Group

Ssangyong Construction has returned to profitability after four years. On the 1st, Ssangyong Construction announced that it achieved a turnaround to profit in 2023 by approving the 2023 financial statements at the 47th regular shareholders' meeting held at its headquarters in Songpa-gu on the 28th of last month, escaping the three-year COVID-19 deficit tunnel. The 2023 settlement results showed sales of 1.443 trillion KRW, net profit of 35.9 billion KRW, and operating profit of 31.8 billion KRW.

Ssangyong Construction explained the background of the profit turnaround as "the cost ratio, which had increased during the COVID-19 period, was significantly reduced thanks to improvements in the cost ratio of domestic housing and construction, as well as reflecting the increase and settlement of contract costs at large overseas construction sites."

It added, "Thanks to the efforts of domestic and overseas sites and the headquarters, the overall company cost ratio was reduced by about 5%. This is the result of identifying and improving unnecessary expenditures at the sites and headquarters and all employees striving to achieve profits." Along with this, the Dubai ‘Atlantis The Royal’ project, which began construction in July 2016, was completed last February after about 80 months of construction affected by COVID-19, and the final negotiations on the increase in construction costs were reflected.

Due to many design changes and a significant extension of the construction period, the construction cost increased from about 900 billion KRW at the time of order to the 1.6 trillion KRW range. This project was ordered by the Dubai Investment Corporation (ICD), a global sovereign wealth fund and Ssangyong Construction's largest shareholder at the time in December 2015, and Ssangyong Construction won the project jointly with Belgium's BESIX as the project lead.

CEO Kim In-su said, "This is the fruit of all employees working together to improve the company's structure and reduce costs after joining the Global Sea Group," and added, "We plan to establish the company as a profitable business through various orders and quality construction not only in existing strong fields domestically and internationally but also in renewable energy and other areas."