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A Samsung Engineering project

Samsung sprints to breach $6.09bn annual order target

SEOUL, 18 days ago

With a healthy project bouquet, Samsung Engineering, a world-leading engineering, procurement, construction and project management (EPC&PM) firm, is sprinting to reach its annual order target of KRW8 trillion ($6.09 billion).
 
This is because the major achieved KRW4.28 trillion of new orders in the first half of 2022.
 
In the second quarter, new orders came in at KRW1.47 trillion and in the first half of the year, at KRW4.28 trillion, which is more than half of Samsung Engineering’s annual order target of KRW8 trillion.  
 
Order backlog of KRW16.7 trillion
As a result, Samsung Engineering has secured an order backlog of KRW16.7 trillion, which is more than two years' worth of revenue of last year.
 
Samsung Engineering signed an agreement with Aramco for the National EPC Champions Initiative under the Aramco Namaat Programme, which is to generate meaningful results in order to expand mid- to long-term orders.
 
In particular, Samsung Engineering took one step closer to its annual order target by winning the order for the KRW890 billion OGP (Onshore Gas Plant for Rosmari Marjoram) project in Bintulu, Sarawak, Malaysia, with it the FEED to EPC success story was continued and the expansion into IOC market was further accelerated. In the second half of the year, we plan to continue participating in the FEED agenda and winning orders in key areas such as petrochemical plants in the Middle East and Asia.
 
Net profit hits KRW139.6 billion
Meanwhile the EPC major has posted a 2.1% rise in net profit to KRW139.6 billion in the second quarter of 2022.
 
Its operating profit for the quarter shot up 48.9% to KRW153.5 billion, achieving a surplus for 22 consecutive quarters and is continuing a solid earnings trend.
 
Through the provisional financial Q2 results today, Samsung Engineering announced a revenue of KRW2,493.4 billion. Compared to the previous year, the revenue increased by 47.0%. In the first half of 2022 revenue of KRW4.65 trillion, operating profit of KRW327.9 billion and net profit of KRW253.3 billion was recorded.  
 
Exceeding market forecast
On the financial results, Samsung Engineering explained: "Even with the uncertain external environment, our performance exceeded the market forecast, due to our project management solutions and performance innovations such as automation and modularisation. 
 
“The revenue created by large-scale hydrocarbon plants in Mexico and Malaysia and in the Middle East, which were ordered through the FEED to EPC strategy, were reflected in the earnings in earnest, and the industrial environment sector also maintained a stable profit structure, showing solid earnings along with top-line growth.”
 
A Samsung Engineering spokesperson said: “Samsung Engineering expects further stable growth and additional profit for 2022.” “We are increasing productivity and efficiency by actively applying process innovations to projects to increase productivity and efficiency, and therefore secure future growth engines by continuously discovering new ESG businesses such as carbon-neutral and hydrogen businesses and environmental infrastructure.”-- TradeArabia News Service
 



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