LOTTE Engineering & Construction Posts 207.7 Billion Won in Cumulative Operating Profit Through Q3, Up 126% Year Over Year

[Financial News] LOTTE Engineering & Construction Co., Ltd. posted cumulative operating profit of 207.7 billion won through the third quarter of this year, up 126% from the same period last year.
According to the Financial Supervisory Service (FSS)'s Data Analysis, Retrieval and Transfer System (DART) on the 13th, LOTTE Engineering & Construction Co., Ltd.'s consolidated revenue for the third quarter was 1.4761 trillion won, and its operating profit was 34.9 billion won.
The decline in the cost ratio, particularly in the housing business, contributed to improved profitability. The cumulative cost of sales ratio through the third quarter was 89.5%, down 4.1 percentage points from 93.6% in the same period last year. The quarterly cost ratio also declined, from 91.7% in the first quarter to 88.8% in the second quarter and 88.0% in the third quarter.
Financial indicators also improved. At the end of the third quarter, the debt ratio was 166.3%, down 20.4 percentage points from 186.7% at the end of last year. PF contingent liabilities fell by about 850 billion won from around 3.2 trillion won at the end of last year, bringing them down to the 2.3 trillion won range. LOTTE Engineering & Construction Co., Ltd. plans to reduce them to the 2.1 trillion won range by year-end.
LOTTE Engineering & Construction Co., Ltd. also expects cash flow to improve as construction payments are collected. It said work at major housing project sites is entering its latter stages, and that final-payment inflows are expected next year as around 20 sites are completed and occupied. The company expects this to help collect construction receivables and improve cash flow from operating activities.
This year's cumulative contract awards for urban redevelopment projects totaled 4.011 trillion won, surpassing last year's full-year total of 3.3668 trillion won. Major projects include the redevelopment of District 4 in Seoul's Seongsu Strategic Redevelopment Zone, worth 1.3492 trillion won; the redevelopment of Geumho District 21, worth 624.2 billion won; the reconstruction of Garak Geukdong Apartment, worth 484 billion won; and the Dogok Woosung Apartment project, worth 400.2 billion won.
LOTTE Engineering & Construction Co., Ltd. plans to secure a medium- to long-term business base by selectively pursuing contracts in prime locations across the Seoul metropolitan area and undertaking mixed-use development projects in partnership with its affiliates.
A LOTTE Engineering & Construction Co., Ltd. official said, “Improvements to our management structure, with a focus on operating businesses for profitability, are translating into tangible results.” The official added, “We plan to step up efforts to secure future competitiveness, based on our strategy of winning high-quality contracts and our stable financial structure.”
[email protected] Choi Ga-young Reporter