April 26, 2024

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[THE INVESTOR] Hyundai Engineering & Construction is set to become the first South Korean construction company to record more than 1 trillion won (US$839.72 million) annual operating profit.

According to industry watchers, Hyundai E&C is likely to post operating profit of 291.1 billion won in the fourth quarter, pushing up the annual total to 1.044 trillion won. 

For the first three quarters, Hyundai E&C’s operating profits increased 4.4 percent from the same period last year to come in at about 750.7 billion won.

The improvement in the company’s profitability has been attributed in part to the decline in unpaid fees due from overseas projects. The company’s outstanding payments currently stands at about 2.37 trillion won, 208.5 billion won lower compared to the end of last year. The company is also said to have seen a small improvement in costs of overseas projects.

The boom in the domestic housing market seen this year also contributed to the company’s figures. During the first three quarters of the year, the company’s domestic sales jumped 18.5 percent on-year to come in at 3.58 trillion won.

By Choi He-suk (cheesuk@heraldcorp.com)