DL E&C's third-quarter operating profit falls 8.1%; year-to-date profit rises 30.9%

[Financial News] DL E&C's operating profit for the third quarter of this year fell 8.1% from a year earlier, reflecting additional costs for the Shaheen Project. However, supported in part by the stabilization of cost ratios in its housing business, operating profit for the first three quarters rose 30.9%, surpassing last year's full-year figure.
DL E&C said on the 30th that, on a consolidated basis, it recorded revenue of 1.5065 trillion won and operating profit of 107.3 billion won in the third quarter. Revenue fell 21% year on year. New orders for the quarter totaled 1.9617 trillion won.
The operating margin for the third quarter was 7.1%, up 1.0 percentage point from 6.1% a year earlier. Year-to-date revenue totaled 5.0347 trillion won, and operating profit came to 424.1 billion won. Year-to-date operating profit exceeded not only the 323.9 billion won recorded over the same period last year but also last year's full-year operating profit of 387 billion won.
The year-to-date operating margin rose to 8.4%, up 2.7 percentage points from 5.7% a year earlier. DL E&C said the result reflected stabilized cost ratios in its housing business, cost management and efforts to improve its business fundamentals.
The quarterly decline in operating profit was partly attributable to additional costs from an extension of the Shaheen Project schedule and accelerated construction being included in total estimated costs. DL E&C plans to continuously monitor factors that could change costs as construction progresses and account for related expenses to manage project risks.
Year-to-date new orders rose 31.0% to 7.2154 trillion won, from 5.5059 trillion won in the same period last year. The company plans to maintain its strategy of selectively pursuing contracts after assessing profitability and business stability.
In its housing business, the company secured the construction rights for the reconstruction of Mok-dong Complex 6 in Seoul's Yangcheon District this year. Negotiated contract procedures are under way for Seongsu District 2 in Seongdong District and Haan Jugong Complex 9 in Gwangmyeong City, Gyeonggi Province, while the company also bid alone on the urban public housing complex project west of Jungdong Station. The projects are valued at 2.0137 trillion won, 930.9 billion won and 759.5 billion won, respectively.
In future growth areas, the company is pursuing orders for energy infrastructure in North America, small modular reactors (SMRs) and data centers. It is preparing a bid for a gas-fired power project in Canada and exploring opportunities in gas-fired power and LNG projects in the United States.
In the nuclear power sector, the company is expanding its cooperation with X-energy and pursuing a design contract for a demonstration reactor project. For data centers, it is seeking new orders based on a pipeline of potential projects worth about 2 trillion won in Hanam, Naedong in Bucheon and Dangjin, among other locations.
[email protected] Choi Ga-young Reporter