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(Photo= Yonhap news) |
[Alpha Biz= Reporter Kim Minyoung] Hyundai Engineering & Construction announced on the 19th that its operating profit for Q2 2024, on a consolidated basis, fell by 34.1% year-on-year to KRW 147.3 billion. Despite this, the company's revenue increased by 20.4% year-on-year to KRW 8.6212 trillion. Net profit also declined by 31.2% to KRW 146.1 billion.
The company attributed the decrease in operating profit to rising raw material costs and additional expenses related to improving quality and safety. To counter these rising costs, Hyundai Engineering & Construction is focusing on expanding its business model through new complex development projects and realizing profits through equity or stock sales.
Looking ahead, Hyundai Engineering & Construction anticipates meeting its annual revenue target of KRW 29.7 trillion, driven by the smooth progress of large-scale overseas projects such as the Jafurah Package 1 in Saudi Arabia and the Basra Refinery in Iraq, as well as increased domestic housing and data center projects.
As of the end of Q2, the company reported a robust order backlog of KRW 90.1228 trillion and held KRW 3.3912 trillion in cash and cash equivalents. Its liquidity ratio stands at 174.9%, and its debt ratio is at 130.3%, reflecting a stable financial structure.
AlphaBIZ Kim Minyoung(kimmy@alphabiz.co.kr)
