Seoul: Daewoo Engineering and Construction (E and C) Co. announced on Tuesday that it experienced a net loss in the second quarter due to a reduction in the number of active construction projects. The company reported a net loss of 43 billion won (US$31 million) in the April-June period, a significant shift from a net profit of 96.5 billion won a year earlier.
According to Yonhap News Agency, the company's operating profit dropped to 82.2 billion won, down from 104.8 billion won from the previous year, while sales fell by 19.4 percent year-over-year to 2.27 trillion won. Daewoo E and C attributed this decline to the decrease in ongoing construction sites following the completion of major projects during the period.
Despite the setback in the second quarter, Daewoo E and C's operating profit for the first half of the year rose to 233.5 billion won, reflecting a 6.3 percent increase from the previous year. This improvement was driven by enhanced margins and the gradual completion of projects that were launched during a time of rising material costs.
The first half of the year saw a 32.3 percent increase in new orders, totaling 5.82 trillion won. Key projects include a mineral fertilizer plant project in Turkmenistan and urban redevelopment initiatives in Seoul. As of the end of June, Daewoo E and C's order backlog was reported at 44.99 trillion won, providing enough work to sustain operations for approximately 4.3 years.
A company official stated, "In the second half of the year, we expect tangible progress in major overseas projects, such as the Czech nuclear power plant and an urban development project in Vietnam."