SAMSUNG E&A

SamsungEngineering, one of the world’s leading engineering, procurement, constructionand project management (EPC&PM) companies announced today, that it recordedan operating profit of KRW 153.5 billion in Q2, achieving a surplus for 22consecutive quarters and is continuing a solid earnings trend.

Through theprovisional financial Q2 results today, Samsung Engineering announced a revenue of KRW 2,493.4billion, an operating profit of KRW 153.5 billion and a net profit of KRW 139.6billion in the second quarter of 2022 (on a consolidated basis and inaccordance with the K-IFRS). Compared to the previous year, the revenue, netprofit and operating profit increased by 47.0%, 2.1% and 48.9%, respectively. Inthe first half of 2022 revenue of KRW 4.65 trillion, operating profit of KRW327.9 billion, and net profit of KRW 253.3 billion was recorded.

Regarding thebackground of the financial results, Samsung Engineering explained, "Even withthe uncertain external environment, our performance exceeded the marketforecast, due to our project management solutions and performance innovationssuch as automation and modularization. Further was stated, “The revenue createdby large-scale hydrocarbon plants in Mexico and Malaysia and in the MiddleEast, which were ordered through the FEED to EPC strategy, were reflected inthe earnings in earnest, and the industrial environment sector also maintaineda stable profit structure, showing solid earnings along with top-line growth.”

In the secondquarter, new orders came in at KRW 1.47 trillion and in the first half of theyear, at KRW 4.28 trillion, which is more than half of Samsung Engineering’sannual order target of KRW 8 trillion. Asa result, Samsung Engineering has secured an order backlog of KRW 16.7trillion, which is more than two years' worth of revenue of last year.

SamsungEngineering signed an agreement with Aramco for the National EPC ChampionsInitiative under the Aramco Namaat Program, which is to generate meaningfulresults in order to expand mid- to long-term orders.

In particular, SamsungEngineering took one step closer to its annual order target by winning theorder for the KRW 890 billion OGP (Onshore Gas Plant for Rosmari Marjoram)project in Bintulu, Sarawak, Malaysia, with it the FEED to EPC success storywas continued and the expansion into IOC market was further accelerated. In thesecond half of the year, we plan to continue participating in the FEED agendaand winning orders in key areas such as petrochemical plants in the Middle Eastand Asia.

A SamsungEngineering spokesperson said, “Samsung Engineering expects further stablegrowth and additional profit for 2022.” Further adding, “We are increasingproductivity and efficiency by actively applying process innovations toprojects to increase productivity and efficiency, and thereforsecure futuregrowth engines by continuously discovering new ESG businesses such ascarbon-neutral and hydrogen businesses and environmental infrastructure.”