Seoul: Hyundai Engineering and Construction Co. (E and C) announced on Wednesday that it experienced a net loss in the fourth quarter, attributed to one-off costs associated with its engineering affiliate. In the three months ending in December, the company reported a net loss of 1.13 trillion won (US$787.3 million), a significant shift from a net profit of 110 billion won in the same period the previous year.
According to Yonhap News Agency, the substantial costs originated from Hyundai Engineering's overseas projects, specifically a refining plant project in Indonesia and a gas processing facility project in Saudi Arabia. A company spokesperson explained that these one-off costs amounted to 1 trillion won, significantly impacting the company's quarterly financial performance.
Additionally, Hyundai E and C, which is 38.6 percent owned by Samsung E and C, reported an operating loss of 1.73 trillion won in the fourth quarter, compared to an operating profit of 144.49 billion won a year earlier. Sales during this period decreased by 15.4 percent to 7.27 trillion won from 8.59 trillion won. The company noted that a weak won and increased raw material costs further contributed to the challenging quarterly results.
For the entire year of 2024, Hyundai E and C posted a net loss of 736.38 billion won, contrasting with a net profit of 654.28 billion won in the previous year. The company also recorded an operating loss of 1.22 trillion won, a stark change from an operating profit of 785.43 billion won in the prior year. Despite these losses, sales for the year rose by 10.3 percent to 32.69 trillion won from 29.65 trillion won.
Hyundai E and C managed to secure 30.53 trillion won worth of orders in 2024, slightly exceeding its annual target of 29 trillion won. Looking ahead, the company aims to win 31.14 trillion won in orders and achieve 30.38 trillion won in sales by concentrating on nuclear power plant projects and other high-end ventures.