DL E&C stock posts Q3 profit decline as nine-month gain reaches 31%

DL E&C reported weaker third-quarter revenue and operating profit on October 30, while cumulative profitability improved sharply. According to The Asia Business Daily, consolidated revenue fell 21 percent year over year to KRW 1.5065 trillion and operating profit declined 8.1 percent to KRW 107.3 billion.

Shaheen Costs Weigh On Quarter

DL E&C said additional costs linked to an extended construction schedule and accelerated work on the Shaheen Project were reflected in the total estimated project costs. The quarterly operating margin nevertheless rose to 7.1 percent from 6.1 percent a year earlier.

Revenue for the first three quarters totaled KRW 5.0347 trillion. Operating profit reached KRW 424.1 billion, while new orders totaled KRW 721.54 billion. The company attributed the improved cumulative profitability partly to stabilized housing-business cost ratios and continued cost-management efforts.

Orders Support Forward Pipeline

Third-quarter new orders amounted to KRW 196.17 billion. DL E&C also secured the Mokdong Complex 6 reconstruction contract and was pursuing negotiated contracts for large redevelopment projects, including Seongsu District 2 and Haan Jugong Complex 9.

Construction And Engineering Focus

DL E&C is a Seoul-based engineering and construction company that provides engineering, procurement and construction services. Its activities include industrial plants for refinery, gas, petrochemical, energy and environmental facilities, civil infrastructure, commercial buildings and housing developments across South Korea and international markets.

South Korea's construction market remains a key setting for DL E&C's housing and infrastructure activity. See broader developments through the KOSPI market overview.

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