Order backlog reaches 27.2 trillion won, more than three times last year's sales; full-year operating profit guidance raised to 1.4 trillion won from 800 billion won
Samsung E&A reported third-quarter sales of 2.91 trillion won ($2.19 billion) and operating profit of 500.6 billion won on Thursday, up 45.8 percent and 183.6 percent, respectively, from the same period a year earlier.
Cumulative sales for the first three quarters reached 7.79 trillion won, with operating profit of 961.9 billion won. Having surpassed both its order and operating profit targets within three quarters, Samsung E&A revised its full-year guidance upward — raising its annual order forecast to 19 trillion won from 12 trillion won and its operating profit outlook to 1.4 trillion won from 800 billion won.
"As revenue from large-scale chemical and advanced industry projects has begun to be fully recognized, productivity and profitability have improved significantly through rigorous project cost management and technology-driven execution innovation incorporating AI, digital transformation and robotics," a company official said.
Samsung E&A's cumulative orders for the year totaled 17.1 trillion won, including 9.4 trillion won in new orders secured in the third quarter. Its order backlog stood at 27.2 trillion won — more than three times last year's sales of 9 trillion won. The results were driven particularly by a 4.7 trillion won fertilizer project for Saudi Arabia's Sabic Agri-Nutrients, awarded in September.
"Building on a robust order backlog, we will sustain strong order performance and stable earnings through rigorous project management and differentiated execution powered by innovative technologies," the official said, adding that the company aims to "solidify the foundation for sustained mid- to long-term growth through balanced expansion across chemicals, advanced industries and new energy."
Also on Thursday, Samsung E&A held a board meeting and approved a shareholder return plan. The company will buy back 780 billion won worth of its own shares over three months starting Friday through Jan. 22 next year. Of that amount, 690 billion won worth of shares will be retired after repurchase to enhance shareholder value, while the remaining 90 billion won will be used for employee bonuses.
"This is a special shareholder return that reflects both the surpassing of our management targets and market expectations," an official said. "The current moment — when growth momentum is anticipated through the integration of AI and robotics into our EPC engineering, procurement and construction technology and data — is the right time for a special shareholder return."
klee@heraldcorp.com
