Hyundai Engineering & Construction headquarters building / Newsis
Hyundai Engineering & Construction (E&C) said Wednesday it shifted to a net loss in the fourth quarter from a year earlier on one-off costs in its engineering affiliate.
In the three months ended in December, Hyundai E&C swung to a net loss of 1.13 trillion won ($787.3 million) from a net profit of 110 billion won a year ago, the company said in a regulatory filing.
"One-off costs worth 1 trillion won deriving from two overseas projects in Hyundai Engineering were reflected in the company's quarterly bottom line," a company spokesperson said over the phone.
The unexpected costs come from Hyundai Engineering's refining plant project in Indonesia and gas processing facility project in Saudi Arabia, he said.
Samsung E&C owns a 38.6 percent stake in Hyundai Engineering.
The company also swung to an operating loss of 1.73 trillion won in the fourth quarter from an operating profit of 144.49 billion won a year ago. Sales fell 15.4 percent to 7.27 trillion won from 8.59 trillion won during the same period.
"A weak won and higher raw materials costs also weighed on the quarterly results," the company said.
For all of 2024, the Korean builder shifted to a net loss of 736.38 billion won from a net profit of 654.28 billion won the previous year.
It also swung to an operating loss of 1.22 trillion won from an operating profit of 785.43 billion won during the mentioned period. Sales rose 10.3 percent to 32.69 trillion won from 29.65 trillion won.
In 2024, Hyundai E&C obtained 30.53 trillion won worth of orders, a bit higher than its annual order target of 29 trillion won.
This year, it aims to win 31.14 trillion won worth of orders and report 30.38 trillion won in sales by focusing on nuclear power plant projects and other high-end projects. (Yonhap)
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