Samsung Engineering, one of the world’s leading engineering, procurement, construction and project management (EPC&PM) companies has registered a revenue of KRW 2.16 trillion won ($1.72 billion), an operating profit of 174.4 billion won and a net profit of 113.7 billion won in the first quarter of 2022 (on a consolidated basis and in accordance with the K-IFRS). 

 

Compared to the previous year, the revenue, operating profit and net profit increased by 41.3%, 62.6% and 12.0%, respectively, it stated. 

 

Announcing the results, Samsung Engineering said the full-fledged sales reflection of the large-scale hydrocarbon projects in Mexico and Malaysia, which are being carried out with the Feed to EPC strategy, drove the Q1 results. 

 

Technological innovations such as automation and modularization contributed to the improvement of performance through quality improvement, cost reduction, and shortening of construction period, it stated.

 

New orders stood at KRW 2.8 trillion in the first quarter, which is 35.1% of the annual order target of KRW 8 trillion, and the order backlog was KRW 17.2 trillion, which is equivalent to two years and four months of revenue in 2021. 

 

Samsung Engineering expects that the overseas order market will gradually improve further after the second quarter due to changes in the external environment such as rising oil prices and recovery of investor sentiment, leading to that the company plans to actively pursue order-receiving activities in key areas such as petrochemicals, oil refining, and gas.

 

In addition, securing profitability-centered order competitiveness through continuous participation in FEED bidding is planned. In particular, as FEED projects are progressing in Southeast Asia, they are expected to be converted to EPC this year, therefore it is predicted that the results of linked orders based on the FEED to EPC strategy will continue.

 

"We are continuing stable growth through thorough project management and substantial management, further we plan to maximize profitability through the realization of technological innovation and continue to secure mid- to long-term future growth engines by nurturing new ESG-based eco-friendly businesses such as green solutions (hydrogen and carbon neutral) and environmental infrastructure," said a spokesperson for Samsung Engineering.

 

Meanwhile, Samsung Engineering held a founding ceremony through in-house broadcasting to commemorate the 52nd anniversary of its founding and the 10th anniversary of moving into the new headquarters building in Sangil-dong, Korea.