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DL E&C Announced Its 2024 Financial Performance 8 trillion and 318.4 billion won in sales, and 270.9 billion won in operating profit
DATE 2025.02.06
VIEW 1154
DL E&C Announced Its 2024 Financial Performance
8 trillion and 318.4 billion won in sales, and 270.9 billion won in operating profit
- Sales up by 27% and operating profit up by 13% in the 4th quarter compared to the 3rd quarter of 2024
- Resulting performance very close to the Guidance despite the recession in the construction industry.
- Projected order award goal for 2025 13.2 trillion won, sales 7.8 trillion won, and operating profit 520 billion won.
- With meticulous risk management and financial stability as the basis, gradual improvement of financial performance is expected.
On the 6th, DL E&C made a provisional performance announcement to disclose that the consolidated annual sales of 2024 to be 8 trillion and 318.4 billion won and the operating profit 270.9 billion won. The annual sales of the last previous year increased from 2023 by 4%. The operating profit, however, fell by 18% from 2023, which was because of the recognition of the bad debts and some adjustment of the cost rate in some of the projects of DL Construction, which is an affiliate company. Thanks to the selected order awarding strategy focusing on high-value projects that could guarantee profitability, the awarding amount of orders was 9 trillion and 480.5 billion won. The sales of the 4th quarter of the last year compared to the 4th quarter of 2023 went up by 4.5%, amounting to 2 trillion and 438.8 billion won, while the operating profit marked 94.1 billion won, up by 6.7%.
Compared to the 3rd quarter, the 4th quarter of 2024 saw an upward trend in sales, operating profits, and order awarding all at the same time, confirming a trend of performance recovery. Compared to the 3rd quarter, the sales grew by 27% (2 trillion and 438.8 billion won), operating profit up by 13% (94.1 billion won), and order awarding up by 20% (3 trillion and 509 billion won).
With the slowing real-estate economy and mounting economic uncertainty, the construction industry is now having a difficult time. However, DL E&C recorded a performance that was more than 90% of the Guidance presented to the investors in August in terms of sales, operating profits, and order awarding alike. Compared to the Guidance, the sales stood at 97%, operating profits at 93%, and order awarding 92%.
▣ Selectively securing high-profitability projects by building a balanced portfolio
To overcome the difficulties debilitating the industry, DL E&C established a balanced business portfolio and adopted a strategy of selectively securing high-profitability project orders. As for the housing sector, the company’s order awarding in urban improvement projects exceeded 1 trillion won, including the 4th Jamshil Woosung Complex, amounting to 381.7 billion won, and the reconstruction project for Dogok Gaepo Hanshin Complex, amounting to 438.5 billion won. In the civil work sector, the company was awarded the Yeongdong PSH Power Station, amounting to 481.8 billion won, reassuring its place as the biggest project awarding record holder in the hydropower and dam construction sectors.
As for the plant sector, the company was awarded with the modernization project for Bundang Combined Thermal Power Station, amounting to 254.6 billion won, and the gas turbine power generator installation project for S-OIL’s Onsan Plant, amounting to 236.7 billion won. In addition, X-energy, the US partner of the company for SMR projects, which is the driving force for future growth, entered into a large-scale investment agreement with Amazon, a global big-tech company. Therefore, the company expects faster materialization of the results in the SMR sector in the future.
▣ Profitability indicators, including cost rates, are showing improvement … as the company maintains one of the highest levels of financial stability in the industry.
The profitability indicators of the company have also improved. The consolidated cost rate for the 4th quarter was 88.2%, which was a 0.9% improvement from the 3rd quarter. With this, the company maintained a cost rate under 90% for the second quarter in a row. The annual cost rate for the year was also below 90%, marking 89.8%, down by 0.4% from 90.2% in 2023. The non-consolidated cost rate of DL E&C for the 4th quarter was 87.1%, which was a 0.7% improvement from the 3rd quarter. DL Construction, on the other hand, saw an improvement of 0.4%, marking 91.8%. DL E&C and the housing sector of DL Construction marked a cost rate of 85.9% and 88.5%, respectively, to drive the improvement in the profitability of the company.
The consolidated debt rate as of the end of the 4th quarter is 100.4%. The cash and cash equivalent assets amounted to 2 trillion and 71.1 billion won, with the net cash amount being 994 billion won, ensuring the highest level of financial stability among all construction companies in South Korea. Even in the face of elevated uncertainties due to the risks in real-estate PF guarantees, the company has been maintaining a credit rating of ‘AA-‘, which is one of the highest ratings in all construction industries, for the past six years.
The consolidated annual goals for this year are 13 trillion and 200 billion won in order awarding, 7 trillion and 800 billion won in sales, and 520 billion won in operating profits. Based on a balanced portfolio between housing, civil works, and plants, the company will continue to employ on its strategy to selectively pursue high-profitability projects.
According to a source in DL E&C, “DL E&C will continue winning new projects with guaranteed profitability based on meticulous risk management and a sound financial structure, as we maintain a gradual performance improvement in 2025, as well.”
