Hyundai E&C recorded an operating loss of more than 1 trillion won last year, marking a turn to deficit. This was due to the temporary reflection of expenses from overseas projects of Hyundai Engineering, a consolidated subsidiary of Hyundai E&C.
Hyundai E&C announced on the 22nd that the provisional aggregate of its annual consolidated performance last year recorded sales of 32.6944 trillion won, an increase of 10.3% compared to 2023. The company achieved 110.1% of its annual sales target of 29.7 trillion won.
Hyundai E&C explained that its annual cumulative sales grew compared to the previous year while reflecting the performance of its housing segment, such as the Olympic Park Foreon, amidst progress on large sites like the Basra refinery in Iraq and the Shahin project.
However, Hyundai E&C incurred an operating loss of 1.2209 trillion won and a net loss of 736.3 billion won last year.
A representative of Hyundai E&C said, “The operating loss of 1.2209 trillion won was due to temporary expenses incurred by Hyundai Engineering in some overseas projects amid growing uncertainties in the domestic and external management environment and continued high exchange rates and rising raw material prices,” adding, “We will re-examine processes and strengthen project management to expedite the normalization of revenue.”
The cumulative amount of new orders last year reached 30.5281 trillion won, achieving 105.3% of the annual order target of 29 trillion won. Hyundai E&C secured an order backlog of 89.9316 trillion won through high-value overseas projects such as the construction of shared housing in the Daejeon Doan 2-2 district, redevelopment in Busan's Goejeong District 5, the design of the Kozloduy nuclear power plant in Bulgaria, and the package 2 of the Jafurah project in Saudi Arabia.
Cash and cash equivalents, including short-term financial products, amount to 5.3964 trillion won, with net cash at 2.1498 trillion won. The liquidity ratio is 144.7%, while the debt ratio is 178.8%.
Hyundai E&C recorded a net loss of 736.4 billion won last year. However, a representative of Hyundai E&C noted that it maintains profitability on a separate basis before tax due to gains realized from investment development projects.
This year, Hyundai E&C has set its target annual sales at 30.3873 trillion won, order amount at 31.1412 trillion won, and operating profit at 1.1828 trillion won.
In addition to maintaining sales through major nuclear power projects and large-scale complex development projects, the company plans to focus on building a profitability-centered business structure, selectively winning orders primarily for core projects, and strengthening cost ratio and construction cost management.
In particular, this year it will focus on expanding the energy value chain, developing innovative technologies and products, and promoting low-competition, high-value overseas projects.
A representative of Hyundai E&C stated, “Improving profitability will be our top priority, and we will do our utmost to secure future growth engines.”