SAMSUNG E&A

- KRW 2.38 trillion in revenue, KRW 164.1 billion in net profit announced on 25th April

- Thorough profit and loss management and cost improvement efforts… solid performance trend

- Achieving differentiated competitiveness through innovation

- Acceleration into new energy transition businesses

SAMSUNG E&A (formerly Samsung Engineering), a total solutions provider for the global energy industry, announced today that it recorded an operating profit of KRW 209.4 billion in the first quarter exceeded the market forecast (KRW 196 billion), continuing a solid performance trend.

Through the Q1 provisional financial results today, SAMSUNG E&A announced it recorded revenue of KRW 2.38 trillion won, operating profit of KRW 209.4 billion, and net profit of KRW 164.1 billion in the first quarter of 2023 (on a consolidated basis and under the K-IFRS). Compared to the same period last year, revenue, operating profit, and net profit decreased by 5.9%, 7.1%, and 6.7%, respectively.

Regarding the performance background, the company said, “Despite the uncertain external environment, we continued to have a solid performance trend that exceeded market forecasts concluded thorough project profit and loss management and efforts to improve cost management through the application of innovations such as modularization and automation.” Further added: “Revenue and operating profits decreased slightly, but we expect them to gradually recover as revenues from new orders will be reflected in future earnings.”

New contract orders in the first quarter amounted to KRW 1.4 trillion, and the order backlog amounted to KRW 16 trillion. In particular, in April, we achieved about 70% of our annual order target of KRW 12.6 trillion by winning a large-scale gas plant order from Saudi Arabia. SAMSUNG E&A plans to continue its order winning performance by implementing a profitability-focused order winning strategy, such as FEED to EPC and application of technological innovation.

A SAMSUNG E&A spokesperson said, “We plan to continue stable growth by focusing on project management and substantial management.” Further added, “We will secure differentiated EPC performance competitiveness through innovation and actively participate in future new businesses based on energy transition, such as hydrogen and carbon neutrality, to strengthen the foundation for mid- to long-term sustainable growth.”