Down 2.2% from the Previous Year
Annual Target Exceeded by 21.5%
Sales Reach 9.9666 Trillion KRW, Down 6.2%
Samsung E&A announced on the 23rd that its consolidated operating profit for last year was tentatively estimated at 971.6 billion KRW, down 2.2% from the previous year.
Last year's sales amounted to 9.9666 trillion KRW, a decrease of 6.2%. Net profit also declined by 8.2% to 638.7 billion KRW. However, operating profit exceeded the annual target of 800 billion KRW by 21.5%.
A Samsung E&A official explained, "It is a level similar to 2023 (993.1 billion KRW), which recorded the highest performance ever," adding, "The profits of major chemical projects improved through the application of differentiated execution systems such as modularization and automation, and profitability-centered cost management, while the industrial environment sector maintained a stable profit structure."
Operating profit in the fourth quarter of last year was 295.8 billion KRW, up 9.6% from the same period last year. Sales during the same period were 2.5785 trillion KRW, down 8.8%. Net profit also decreased by 1.2% to 111 billion KRW.
Orders received totaled 14.4 trillion KRW last year, including about 2.9 trillion KRW in the fourth quarter, achieving the highest order amount ever. The order backlog stood at 21.3 trillion KRW, securing work equivalent to 2 years and 2 months based on last year's sales. Representative projects include the Saudi gas plant, Malaysia bio-refinery plant, and Qatar petrochemical plant.
In particular, through the order for the Malaysia bio-refinery plant, Samsung E&A entered the sustainable aviation fuel (SAF) market, an eco-friendly alternative fuel, for the first time.
With steady performance continuing, Samsung E&A also decided to resume dividends for the first time in 12 years. Accordingly, shareholder returns will be implemented at a level of 15-20% of controlling interest net profit for three years from last year through 2026. First, a cash dividend of 660 KRW per common share will be paid through the 2024 fiscal year settlement dividend. The total dividend amount is approximately 129.4 billion KRW, with a dividend yield of about 3.9%.
A Samsung E&A official stated, "Based on a rich order backlog, we plan to continue stable growth through differentiated execution systems and thorough project management," adding, "We will continue a profitability-centered order strategy and accelerate new business promotion in the energy transition sector to strengthen the foundation for sustainable mid- to long-term growth."
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