Seoul: Samsung E and A Co., a South Korean plant builder, announced a 4.2 percent drop in its net profit for the first quarter, attributing the decline to decreased sales. The company's net income for the January-March period stood at 157.2 billion won (US$109.9 million), compared to 164.1 billion won in the same period last year.
According to Yonhap News Agency, despite the decline, the earnings surpassed market expectations, which had predicted a net profit of 145.7 billion won, based on a survey by Yonhap Infomax, the financial data unit of Yonhap News Agency. The company's operating profit for the quarter was reported at 157.3 billion won, marking a 24.9 percent decrease from 209.4 billion won a year ago, while revenue fell 12 percent to 2.09 trillion won.
Looking ahead, Samsung E and A expressed optimism for a recovery in the second half of the year, as revenue from a $6 billion gas plant expansion project in Saudi Arabia is expected to start contributing to its financial results. The project, known as the Fadhili Gas Increment Program, was secured in partnership with GS Engineering and Construction Corp., under the auspices of Saudi Arabia's state oil giant, Saudi Aramco, in April last year.
Samsung E and A has outlined ambitious annual targets of 9.5 trillion won in sales and 700 billion won in operating profit for 2025. In the first quarter, the company secured 2.4 trillion won worth of new orders, increasing its order backlog to 21.4 trillion won.
The company emphasized its commitment to enhancing profitability and sustaining growth momentum through a profit-focused order strategy.