The construction site of the Usumania ethane recovery facility in Saudi Arabia. [Photo provided by Hyundai Engineering & Construction Co.]

South Korea’s Hyundai Engineering & Construction Co. (Hyundai E&C) reported a 19.4 percent on-quarter gain in operating profit in the April-June period on bulky orders in the Middle East.

Hyundai E&C disclosed Thursday its consolidated operating profit amounted to 245.1 billion won in the quarter ended June, up19.4 percent from a quarter ago and 11.0 percent from a year earlier. Net profit jumped 23.2 percent on quarter but lost 4.7 percent on year to total 192.2 billion won, while revenue added 20.7 percent and 10.4 percent to 4.68 trillion won during the period.

Its shares on Thursday closed 2.32 percent lower at 44,250 won in Seoul trading.

For the full first six-month period, the company raked in an operating profit of 450.3 billion won, up 2.5 percent from the previous year. Net profit rose 2.9 percent to 348.2 billion won, and sales gained 10 percent to 8.56 trillion won during the same period.

[Source: Hyundai E&C Co.]

Strengthening in this year’s performance is owed to revived orders from the Middle East – a LNG terminal in Kuwait and $2.7 billion order for gas and crude oil processing facilities in Saudi Arabia. On the home front, it won state procurements to build an ICT complex and a new section in Gimpo-Paju expressway. Its debt ratio was improved to 113.9 percent, with an operating margin kept above 5 percent.

Hyundai E&C bagged total 11.48 trillion won worth orders at home and abroad in the first six months, up 11.8 percent from a year-ago period. Its order backlog as of now reaches total 58.74 trillion won, according to the company.

“We’ve generated stable profit this year with projects that we have a competitive edge in the industry. We’ll keep up efforts to focus more on the profitable business and maintain credibility from markets,” said an official at Hyundai E&C.

By Lee Ji-yong and Lee Ha-yeon

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