Samsung Engineering has reported revenue of KRW 2,163.4 billion, an operating profit of KRW 174.4 billion and a net profit of KRW 113.7 billion in the first quarter of 2022 (on a consolidated basis and in accordance with the K-IFRS). Compared to the previous year, the revenue, operating profit and net profit increased by 41.3%, 62.6% and 12.0%, respectively. 

 

The company explained on the financial results, “The full-fledged sales reflection of large-scale hydrocarbon projects in Mexico and Malaysia, which are being carried out with the FEED to EPC strategy, drove the Q1 results. Technological innovations such as automation and modularization contributed to the improvement of performance through quality improvement, cost reduction, and shortening of construction period.”

 

New orders stood at KRW 2.8 trillion in the first quarter, which is 35.1% of the annual order target of KRW 8 trillion, and the order backlog was KRW 17.2 trillion, which is equivalent to two years and four months of revenue in 2021. Samsung Engineering expects that the overseas order market will gradually improve further after the second quarter due to changes in the external environment such as rising oil prices and recovery of investor sentiment, leading to that the company plans to actively pursue order-receiving activities in key areas such as petrochemicals, oil refining, and gas.  In addition, securing profitability-centered order competitiveness through continuous participation in FEED bidding is planned. In particular, as FEED projects are progressing in Southeast Asia, they are expected to be converted to EPC this year, therefore it is predicted that the results of linked orders based on the FEED to EPC strategy will continue.

 

A Samsung Engineering spokesperson said, “Samsung Engineering is continuing stable growth through thorough project management and substantial management, further we plan to maximize profitability through the realization of technological innovation and continue to secure mid- to long-term future growth engines by nurturing new ESG-based eco-friendly businesses such as green solutions (hydrogen and carbon neutral) and environmental infrastructure.”