Daewoo E&C chalked up 760 billion won in operating profit in 2022, the best-ever business performance since its establishment, and surpassing market consensus.
Provisional figures, released in an electronic notice on Jan. 31, showed that Daewoo E&C posted 10,419.2 billion won in sales, 760 billion won in operating profit and 508 billion won in net profit on a consolidated basis last year.
Daewoo E&C logged 10,419.2 billion won as of the end of 2022, a 20 percent surge over the previous year.
The figure broke down into 6,369 billion won in the housing and construction business, 1,897.3 billion won in the civil works sector, 1,446 won in the plant business, and 716.9 billion won in Daewoo E&C THT Development ‘s projects in Hanoi.
Daewoo E&C saw 2022 operating profit stand at 760 billion won, a 2.9 percent year-on-year increase over the previous year.
The contractor saw the operating profit sales rate surge to 7.29 percent. Daewoo E&C logged 508 billion won in net profit, a 4.8 percent year-on-year increase over 484.9 billion won in the previous year, showing a solid growth rate.
Despite uncertain outside conditions, Daewoo E&C has been evaluated to have proven its excellent crisis management capabilities by posting the operating profit surpassing market consensus: 190.2 billion won based on FnGuide’s estimates.
A Daewoo E&C official said, “Despite hard outside and inside management conditions, such as steep interest hikes, raw materials and outside order costs, Daewoo E&C saw sales increase on the back of the solid growth of the housing and construction business and the actualization of Iraq’s Al-Fāw New Port Development project by the civil works business sector and Nigeria LNG Train 7 project by the plant business sector.”
Overall, the operating profit to sales rate declined through conservative reflection of cost increase rates, but sales accrued via villas and the disposal of sites in a new satellite city of Hanoi, Vietnam, and cost rates are predicted to be stabilized on a continuous growth of civil works and plant businesses, the official added.
Daewoo E&C Becomes Leader in Nigerian Construction Market by Landing Succession of Orders
Daewoo E&C won an order on the rehabilitation of the Kaduna refinery facilities of Kaduna Refining & Petrochemical Company Limited (KRPC), a subsidiary of Nigerian National Petroleum Corporation (NNPC) and struck a deal on Kaduna Refinery Quick Fix Project with NNPC on Feb. 2, the contractor said.
The latest project was similar to the Warri Refinery Quick Fix Project Daewoo E&C landed from Warri Refining and Petrochemical Co., a subsidiary of NNPC last June. It reconfirmed Daewoo E&C’s technology competitiveness in Nigeria.
Among notables on hand at the signing ceremony that took place at the NNPC headquarters in Abuja were Korean Ambassador Kim Young-chae to Nigeria, Cho Seung-il, NNPC Group CEO Mele Kyari, President Mustafa Sugungun of KRPC, and Adeyemi Adetunji, NNPC Group Executive Director-Downstream.
The value of the project stands at $589.18 million (about 725.5 billion won). The project will be executed in three work packages with a duration of 21 months.
The duration of first and second work packages was fixed, but the third work package is to be discussed and approved by the owner of the project.
The project calls for quick repair of the Kaduna Refinery, located at the Kaduna area, 160 km north of Abuja, the capital of Nigeria. Under a private contract, Daewoo E&C will be responsible for testing-operating the refinery to produce petrochemical products.
Kaduna Refinery was dedicated as a refinery plant with a 110,000 bpd-capacity by Chiyoda Corp. of Japan in 1983.
NNPC side wants the completion of repairing and test-operating the refining facilities as soon as possible.
Nigeria is Africa’s biggest oil producer, but the country depends on imports for petroleum and other fuels due to lower operation rates of dysfunctional refining facilities.
Recent imported petroleum product price hikes and payment of subsidies on pump oil prices have weighed down on the fiscal burden of the Nigerian government.
A Daewoo E&C official said Daewoo E&C’s winning of the latest project was owed to the contractor’s track record of having built refinery facilities in Kuwait, Oman and Saudi Arabia and successfully implemented many projects in Nigeria, such as NLNG Train 7, Warri Refinery Quick Fix projects, and the contractor could have won a private contract in consideration of the owner of the project, wanting a quick work process.