Korea’s largest contractor, Hyundai Engineering & Construction, reported a 26% rise in net profit for the first quarter of 2020 – and a massive rise in orders for the period – in a market filing on Friday, 24 April.
Net profit rose to $159m from $126m a year ago, which the company said was largely the result of favourable foreign exchange rates.
However, operating profit dropped 19% to $134m, which the company said was the result of coronavirus site closures. The company’s shares lost 5% of their volume in Seoul following the announcement.
Revenue grew 4.7%, based on a number of large projects, such as Matarbari Port in Bangladesh, The Hyundai Oilbank refinery in Korea, and brisk business in domestic residential developments.
However, future prospects seem brighter following a bumper crop of orders in the quarter, including the Panama Metro Line 3, Qatar’s Lusail Plaza Tower and Beaocheon redevelopment project in Busan, Korea.
Altogether, new orders amounted to $8bn, almost three-and-a-half times higher than the first quarter of 2019.
In the second quarter it has already scored a number of big wins, including a $340m deal to expand Taiwan’s DaTan Combined Cycle Power Plant, its first win in that country, and a $164m project to build its third Aeon shopping mall in Cambodia.
Image: Hyundai reports brisk business in domestic residential developments (Hyundai E&C)