DL E&C's Q3 Revenue and Operating Profit Decline; YTD Operating Profit Rises 31%

Operating profit of KRW 107.3 billion
Down 8.1% year over year, but
Year-to-date operating profit up 31% year over year

DL E&C recorded consolidated revenue of KRW 1.5065 trillion and operating profit of KRW 107.3 billion in the third quarter of this year. The results reflect additional costs for the Shaheen Project being included in the total estimated project costs. However, operating profit for the year to date and new orders both surpassed last year's full-year figures.

According to the Financial Supervisory Service's electronic disclosure system on October 30, DL E&C reported consolidated revenue of KRW 1.5065 trillion and operating profit of KRW 107.3 billion for the third quarter of this year. Revenue fell 21% and operating profit declined 8.1% from the same period a year earlier.

Provided by DL E&C.

DL E&C said operating profit declined from a year earlier because it included additional costs resulting from an extended construction period and accelerated construction work on the Shaheen Project in its total estimated project costs. However, its operating margin was 7.1%, up 1.0 percentage point from the same period a year earlier.

Profitability indicators also improved on a year-to-date basis. Revenue for the first three quarters totaled KRW 5.0347 trillion, while operating profit came to KRW 424.1 billion. Operating profit for the period rose 30.9% from KRW 323.9 billion in the same period a year earlier, surpassing last year's full-year operating profit of KRW 387 billion. The company said, "The results reflect the stabilization of cost ratios in our housing business, along with efforts to manage costs and improve our business fundamentals."

New orders also increased. New orders in the third quarter totaled KRW 196.17 billion, bringing the year-to-date total to KRW 721.54 billion. On a year-to-date basis, new orders rose 31.0% from KRW 550.59 billion in the same period a year earlier.

In this year's housing business, the company secured the construction contract for the Mokdong Complex 6 reconstruction project. It is also pursuing negotiated contract procedures for large-scale redevelopment projects, including Seongsu District 2, valued at KRW 2.0137 trillion, and Haan Jugong Complex 9, valued at KRW 930.9 billion.

DL E&C maintained a solid financial position. At the end of the third quarter, it had net cash of KRW 1.1238 trillion and a debt-to-equity ratio of 79%. The company said, "Our strategy is to actively respond to uncertainty in the construction market and project risks, backed by a stable net cash position and sound financial health."

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