Hyundai E&C's Q1 Net Profit Jumps 24% on Weaker Won, Asset Gains
L'essentiel
Hyundai Engineering & Construction (E&C) reported a 24% increase in first-quarter net profit, reaching 206.8 billion won, driven by a weaker South Korean won and asset revaluation gains, despite a decline in operating profit and sales.
Résumé généré par IA
Pourquoi c'est important
Hyundai Engineering & Construction (E&C) is a South Korean construction company reporting its financial results for the first quarter of the year. The company's performance is influenced by global economic factors like currency exchange rates and the completion of large-scale projects.
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.
À surveiller
Perspective IA — des possibilités, pas des certitudes
Hyundai E&C will continue to pursue overseas nuclear power projects, particularly in the United States.
Probable · En quelques mois
The company will implement stricter risk management protocols due to rising geopolitical risks.
Très probable · En quelques mois
The company's financial performance in the next quarter may be influenced by the ongoing volatility of raw material prices.
Possible · En quelques mois
Questions ouvertes
- What is the specific value of the asset revaluation gains?
- What are the projected impacts of geopolitical risks on future projects?
- What is the company's specific strategy for strengthening its portfolio in energy-related businesses?
