Doosan Enerbility Posts Q1 Operating Profit of 142.5 Billion Won, Down 4.9% Year-on-Year

Sales of High-Profit Businesses Like SMR Expected to Increase from Q2
Positive Impact from Large-Scale Gas Power Plant Projects in the Middle East
Order Backlog Up by 1 Trillion Won... "Q2 Guidance Expected to Be Met"

Doosan Enerbility reported a 4.9% year-on-year decline in operating profit for the first quarter of this year, impacted by decreased performance from its subsidiaries. However, the company expects that, starting from the second quarter, the proportion of high-profit businesses such as nuclear power and small modular reactors (SMR) will increase, allowing operating profit to reach the 370 billion won range.

On April 30, Doosan Enerbility announced through a regulatory filing that its consolidated sales for the first quarter of this year amounted to 3.7486 trillion won, with operating profit of 142.5 billion won. These figures represent decreases of 8.5% and 4.9%, respectively, compared to the same period last year. The decline was attributed to weaker performance from subsidiaries such as Doosan Bobcat. Net loss for the period was recorded at 21.2 billion won.

Doosan. Photo by Jinhyung Kang

The company explained that while the completion of large-scale engineering, procurement, and construction (EPC) projects led to a partial decrease in sales and operating profit, these projects were relatively low in profitability. The company further stated that, beginning in the second quarter, the share of high-profit growth businesses such as nuclear power, SMR, and gas turbines will increase. The proportion of revenue from growth businesses accounted for 54% in the first quarter of this year and is expected to rise to 78% by the fourth quarter.

Orders for the Enerbility division, including overseas subsidiaries, reached 1.7208 trillion won in the first quarter, driven by securing large gas power plant projects in the Middle East. In March alone, Doosan Enerbility signed contracts worth more than 3 trillion won in Saudi Arabia. The order backlog stood at 16.1492 trillion won at the end of the first quarter, up approximately 1 trillion won from the same period last year.

A Doosan Enerbility representative stated, "From the second quarter, performance is expected to enter an upward trend, and we anticipate meeting the guidance presented for this year, including operating profit of 373.2 billion won."