GS Geonseol Reports Operating Profit of 93.7 Billion KRW in Q2, Turning to Profit Compared to Same Period Last Year

GS Construction announced on the 26th that its consolidated operating profit for the second quarter of this year was tentatively estimated at 93.7 billion KRW, marking a turnaround to profitability compared to the same period last year.

Sales amounted to 3.2972 trillion KRW, a 5.66% decrease compared to the same period last year. Net profit turned positive at 36.6 billion KRW.

This turnaround to profitability is largely due to the reflection of last year's large-scale settlement loss, which caused an operating loss. GS Construction decided to reconstruct the apartment complex in Geomdan New Town, Incheon, where an underground parking lot collapse occurred in April last year, temporarily reflecting a settlement loss of 550 billion KRW, resulting in an operating loss of 413.8 billion KRW in the second quarter of last year.

Sales increased by 7.4% compared to the previous quarter, with the New Business Division recording sales of 350.3 billion KRW, a 21.9% increase during the same period. The Architecture and Housing Business Division posted 2.5327 trillion KRW, up 6.1%, while the Infrastructure Business Division saw a 1.5% decrease to 259.1 billion KRW.

Sales for the first half of this year totaled 6.3681 trillion KRW, with operating profit at 164.2 billion KRW.

New orders in the first half reached 8.3465 trillion KRW, a 46.7% increase compared to the first half of last year. The Plant Business Division secured the Saudi Arabia Fadhili Gas Expansion Program Package 2 'Sulfur Recovery Unit' project worth 1.6 trillion KRW, while the New Business Division led performance by winning the Oman Ghubrah 3 IWP seawater desalination project (1.8 trillion KRW) and the Brazil Cesan wastewater treatment reuse project (880 billion KRW). Overseas new orders alone accounted for more than half, totaling 4.919 trillion KRW.

In the Architecture and Housing Business Division, projects secured include the Songdo International Complex 2nd Phase Development Project (490 billion KRW), Busan Beomcheon-dong apartment construction (230 billion KRW), and Cheonan Seongseong 8 District apartment construction (220 billion KRW).

A GS Construction official stated, "GS Construction continues to take steps toward sustainable growth amid uncertain domestic and international business environments," adding, "Based on the recently announced new vision, we will build a more stable business portfolio and continue strategic business execution through securing profitability."