Hyundai Construction "Operating Profit Expected to Reach 1.2 Trillion Won This Year"

Revealed at the Regular Shareholders' Meeting

Hanwoo Lee, CEO of Hyundai Engineering & Construction, stated at the regular shareholders' meeting on the 20th, "This year, as the existing adverse factors and uncertainties have been resolved, we expect to turn a profit and recover operating profit to around 1.2 trillion KRW."

The company recorded an operating loss of approximately 1.2 trillion KRW on a consolidated basis last year, reflecting losses from its subsidiary Hyundai Engineering's overseas projects in advance. They see a high possibility of a rebound this year. The order intake target for this year is set at 31.1 trillion KRW, and sales are projected at around 30.4 trillion KRW. The order intake target is slightly higher than last year's (30.5 trillion KRW), while sales are set lower than last year's (32.7 trillion KRW).

The current order backlog is about 90 trillion KRW, which is the largest in the construction industry. CEO Lee said, "We will restore competitiveness through structural improvement and lay the foundation for sustainable growth by developing innovative products and technologies. We have set fulfilling corporate social responsibilities and creating value as our management policy for this year, and through this, we will firmly establish our status as a global construction leader."

Lee Han-woo, CEO of Hyundai Engineering & Construction, is delivering a greeting at the 75th Annual General Meeting of Shareholders held on the 20th at the headquarters in Jongno-gu, Seoul. Photo by Hyundai Engineering & Construction

At the shareholders' meeting, hydrogen energy business was added to the business objectives. The company self-assessed its technological competitiveness in the nuclear power sector as high, having constructed 24 large nuclear power plants domestically and internationally and preparing to start construction of a Small Modular Reactor (SMR) in the United States. They also presented plans to strengthen capabilities in next-generation energy fields such as hydrogen, offshore wind power, and solar power, aiming to establish a leading position in the energy sector.

Agenda items such as the appointment of directors and audit committee members, and the limit on directors' remuneration (50 billion KRW annually, unchanged from the previous year) were sequentially approved at the meeting. A dividend of 67.5 billion KRW was allocated, with common stock dividends set at 600 KRW and preferred stock dividends at 650 KRW. Since the earnings announcement in January this year, a significant number of executives have purchased company shares, and as of this date, 80 executives, accounting for 93% of all executives, hold a total of 46,710 company shares.