DL E&C announced Q1 earnings in 2024
DATE 2024.05.02
VIEW 352
DL E&C announced Q1 earnings in 2024, recording sales of KRW1.8905 trillion and new orders of KRW1.9109 trillion, respectively.
- a year-on-year increase of 2.2% on a consolidated basis
- Maintain stable financial position, including net cash of KRW 1.25 trillion (+KRW189.6 billion, compared to the end of the previous year)
DL E&C announced a provisional performance on the 2nd, and disclosed that it expects sales of KRW 1.8905 trillion, operating profit of KRW60.9 billion and new orders of KRW1.9109 trillion in the 1st quarter of 2024 on a consolidated basis. Sales increased by 2.2% compared to the same period last year (KRW1.8501) and operating profit decreased by 32.5% compared to the same period last year (KRW90.2 billion) on a consolidated basis.
New orders amounted to KRW792.9 billion in the housing business, KRW285.2 billion in the civil engineering business, KRW37.3 billion in the plant business, and KRW795.5 billion in the subsidiary DL Construction. Although the new orders for the 1st quarter of this year decreased compared to the track record on wining orders of KRW3.2762 on a consolidated basis, it can be considered a track record similar to previous year, taking into account the large-scale new orders (KRW1.4 trillion of Shaheen Project) included in the track record on winning orders in the 1st quarter of last year.
Sales in the 1st quarter recorded KRW1.8905 trillion, similar to the same period last year. Operating profit decreased to KRW60.9 billion, compared to the same period last year. Profitability of the housing business fell below the level of the 1st quarter and annual average last year due to the aftermath of the rise in raw material prices, falling short of the performance in the same period last year. DL E&C strives to increase contract price for existing projects in order to continuously save cost, and predicts that improvement in profitability of the housing business will accelerate from the 2nd half of the year. Moreover, the profitability of the plant and civil engineering business is still maintained at the highest level in the industry, while sales are expected to increase in earnest from this year, and profits are expected to increase accordingly.
DL E&C, which has the strongest financial structure among major construction companies, still maintains the industry’s highest level of financial stability. Net cash on a consolidated basis as of the end of the 1st quarter of this year increased by KRW189.6 billion compared to the end of last year, amounting to KRW 1.2506 trillion. While cash and cash equivalents increased by KRW223.3 billion comparted to the end of last year, borrowings increased by only KRW33.7 billion. In spite of the escalating financial risks in the construction industry, including the downgraded credit ratings of major construction companies caused by the recent contingent liabilities of real estate project financing and liquidity risks in the construction industry, DL E&C’s stable financial position and credit rating steadily maintains the industry’s highest level, which stands out even more.
An official of DL E&C said, “Although the construction industry is expected to remain challenging this year, we will consistently maintain the profitability-oriented selective strategy for wining orders as before to overcome the crisis, as well as, achieve differentiated profit improvement through continuous cost control.”
