News
DL E&C announced cumulative track records for the first half of 2023.
DATE 2023.07.27
VIEW 412
DL E&C announced cumulative track records for the first half of 2023.
Achieved KRW3.8206 trillion in sales and KRW5.5137 trillion in winning new orders
-Winning new orders cumulatively increased by 23% in the first half of the year, and all business divisions are conducting aggressive activities for winning orders
-Continued sales growth in the second quarter following the first quarter, and the consolidated sales in the first half increased by 13%
-Maintained industry-leading financial stability with a debt-to-equity ratio of 89% and net cash of KRW1 trillion
DL E&C announced on the 27th by means of tentative earnings release that it expected cumulative sales of KRW3.8206 trillion and operating profit of KRW162 billion for the first half of 2023 on a consolidated basis. The sales in the second quarter was KRW1.9706 trillion and operating profit KRW719. Billion.
Winning new orders in the first half of the year reached KRW5.5137 trillion as the Company executed an aggressive strategy for winning orders across all business divisions. The Civil Engineering Division achieved good track records in May, such as obtaining orders for the Namhae –Yeosu Undersea Tunnel with a total project cost of KRW697.4 billion, up more than 23% from the first half of last year (KRW4.4818 trillion). In particular, the Plant Project Division won orders for Package 1 TC2C Construction worth KRW1.4 trillion out of Shaheen Project invested by S-Oil, the all-time largest domestic petrochemical project, achieving track record of winning new orders worth KRW1.8649 in total which increased by more than 4 times compared to the first half of last year.
The housing business is also continuing to make a meaningful achievement for winning orders. Although not included in this result of winning orders, the Company was selected in May as a preferred bidder for the ‘Baekhyeon MICE’ urban development project with a total project cost of KRW6.3 trillion. Of this, winning orders worth about KRW2 trillion is expected to be recognized in the third quarter. The Company is also continuing to conduct aggressive activities for winning orders, such as securing rights to construct ‘Housing Redevelopment Project in 5th District, Jung-dong’ in the total amount of KRW540.1 billion, which is considered one of the best location in Haeundae, Busan.
Sales in the first half of the year on a consolidated basis were KRW3.8206 trillion, an increase in about 13% compared to the same period last year (KRW3.3971 trillion). Especially, as the track records of plants and overseas subsidiaries is increasing greatly, the Company is anticipated to easily achieve its annual consolidated sales guidance of KRW8.2 trillion presented at the beginning of the year.
Operating profit in the first half of the year declined year-on-year due to global inflation and rise in prices of construction materials. However, the housing cost ratio, which has risen every year since the second quarter of last year, recorded 91.7%, a fall in 0.6% points from the previous quarter, and improved for the first time in more than a year. This has brightened the outlook for future earnings growth.
On the other hand, DL E&C’s debt-to-equity ratio on a consolidated basis as of the end of the second half of the year is 89%, and its net cash holding is KRW1 trillion, maintaining the most stable financial structure among domestic construction companies. In particular, despite the recent liquidity crises in the construction industry as a whole due to the insolvency of real estate PFs, DL E&C was once again recognized for its stable financial structure with its credit rating of ‘AA-’, the highest level in the construction industry, from Korea Ratings and Korea Investors Service.
An official from DL E&C said, “This year, we will also continue to maintain a stable financial structure with unchanged net cash holding and low debt-to-equity ratio, as well as improve our sales and operating profit based on our diverse construction experiences and knowhow.”
