Hyundai E&C's Q1 Net Profit Jumps 24% on Weaker Won, Asset Gains

SEOUL, April 28 (Yonhap) -- Hyundai Engineering & Construction (E&C) Co. said Tuesday its first-quarter net profit rose 24 percent from a year earlier, supported by a weaker won and gains from asset revaluation.

Net profit for the three months that ended in March rose to 206.8 billion won (US$140.5 million) from 166.7 billion won in the same period last year, the company said in a press release.

"A weaker local currency increased the value of overseas, dollar-denominated projects when converted into the won, while revaluation gains also lifted earnings," a company official said.

The Korean won averaged 1,465.16 per U.S. dollar in the first quarter, compared with 1,452.66 a year earlier, data by the Bank of Korea showed.

Operating profit fell 15.4 percent to 180.9 billion won in the first quarter from 213.7 billion won a year ago. Sales declined 15.8 percent to 6.28 trillion won from 7.45 trillion won.

The company attributed the declines to the completion of major construction projects between late December and early this year.

Despite a weaker operating performance, Hyundai E&C said it remains on track to meet its full-year targets. In the first quarter, it achieved 22.9 percent of its annual sales goal of 27.4 trillion won and secured 12 percent of its order target of 33.4 trillion won.

The company said it is pursuing overseas nuclear power projects, including a bid to supply small modular reactors (SMRs) to Holtec International for the Palisades plant in Michigan. It is also seeking a contract from Fermi America LLC to build four nuclear reactors in Texas.

Amid rising geopolitical risks and volatile raw material prices, the company said it will focus on risk management and operational efficiency while strengthening its portfolio in energy-related businesses.