Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies announced today, that it recorded an operating profit of KRW 153.5 billion in Q2, achieving a surplus for 22 consecutive quarters and is continuing a solid earnings trend.

 

Through the provisional financial Q2 results today, Samsung Engineering announced a revenue of KRW 2,493.4 billion, an operating profit of KRW 153.5 billion and a net profit of KRW 139.6 billion in the second quarter of 2022 (on a consolidated basis and in accordance with the K-IFRS). Compared to the previous year, the revenue, net profit and operating profit increased by 47.0%, 2.1% and 48.9%, respectively. In the first half of 2022 revenue of KRW 4.65 trillion, operating profit of KRW 327.9 billion, and net profit of KRW 253.3 billion was recorded.  

 

Regarding the background of the financial results, Samsung Engineering explained, "Even with the uncertain external environment, our performance exceeded the market forecast, due to our project management solutions and performance innovations such as automation and modularization. Further was stated, “The revenue created by large-scale hydrocarbon plants in Mexico and Malaysia and in the Middle East, which were ordered through the FEED to EPC strategy, were reflected in the earnings in earnest, and the industrial environment sector also maintained a stable profit structure, showing solid earnings along with top-line growth.”

 

In the second quarter, new orders came in at KRW 1.47 trillion and in the first half of the year, at KRW 4.28 trillion, which is more than half of Samsung Engineering’s annual order target of KRW 8 trillion. As a result, Samsung Engineering has secured an order backlog of KRW 16.7 trillion, which is more than two years' worth of revenue of last year.

 

Samsung Engineering signed an agreement with Aramco for the National EPC Champions Initiative under the Aramco Namaat Program, which is to generate meaningful results in order to expand mid- to long-term orders.

 

In particular, Samsung Engineering took one step closer to its annual order target by winning the order for the KRW 890 billion OGP (Onshore Gas Plant for Rosmari Marjoram) project in Bintulu, Sarawak, Malaysia, with it the FEED to EPC success story was continued and the expansion into IOC market was further accelerated. In the second half of the year, we plan to continue participating in the FEED agenda and winning orders in key areas such as petrochemical plants in the Middle East and Asia.

 

A Samsung Engineering spokesperson said, “Samsung Engineering expects further stable growth and additional profit for 2022.” Further adding, “We are increasing productivity and efficiency by actively applying process innovations to projects to increase productivity and efficiency, and therefore secure future growth engines by continuously discovering new ESG businesses such as carbon-neutral and hydrogen businesses and environmental infrastructure.”