▲ 18.56 trillion won in new orders (+61.1% YoY)/ achieved almost 74% of annual order target
▲ 66.29 trillion won in order backlog, up 17.7% from the end of last year/ secured orders covering 3.8 years
▲ 5.33 trillion won in cash & cash-equivalent asset, up 24.1% from the end of last year 
   ... 2.59 trillion won in net cash flow, up 51.5% from the end of last year
▲ 200.2% liquidity ratio, 113.3% debt-to-equity ratio
▲ Identify future growth drivers based on solid financial structure and ample cash liquidity

On July 24th, Hyundai Engineering & Construction(Hyundai E&C) announced that its consolidated earnings for the first-half of 2020 recorded 8.6 trillion won in sales, 319.2 billion won in operating profit, and 266 billion won in net profit.

New orders recorded 18.56 trillion won, up 61.6% from the end of last year, owing to domestic and overseas projects including Panama’s Metro Line 3, Qatar’s Lusail Plaza Tower PLOT3 and PLOT 4 project in Qatar, Hannam District 3 redevelopment, Busan Beomcheon Zone 1-1 urban renewal projects. The amount represents around 74% of the annual order target for 2020.

The order backlog also increased 17.7% from the end of last year, to 66.29 trillion won, stably securing orders covering 3.8 years.

Sales posted 8.6 trillion won, up 0.5% year-on-year, driven by solid domestic housing projects and full-scale implementation of the domestic plant projects such as Hyundai Oilbank’s refinery improvement project.

Operating profits posted 319.2 billion won, down 29.1% year-on-year, and this was based on a conservative accounting approach, amidst a more prolonged outlook for Covid-19 pandemic.

Meanwhile, despite the continued difficult global environment, Hyundai E&C has maintained stability based on its ample cash liquidity and solid financial structure.

Its liquidity ratio, an indicator for solvency, is 200.2% while debt-to-equity ratio is 113.3%. With the industry’s highest credit rating of AA-, the company has maintained a solid financial structure.

In particular, cash and cash-equivalent assets (including short-term financing products) stand at 5.33 trillion won, while net cash flow recorded 2.59 trillion won, demonstrating the company’s ample cash liquidity.

Hyundai E&C plans to invest in new growth businesses leveraging its competitive edge and outstanding financial structure built on improved fundamental competitiveness, so as to better prepare for the rapidly changing post-Covid 19 era.

In particular, to meet the growing social call for more low-carbon and eco-friendly economy, Hyundai E&C will secure growth drivers focusing on new renewable energy and eco-friendliness which are part of Korea’s New Deal Initiative, and key projects are underway in the areas of hydrogen fuel cell development, wind power, tidal power generation, and pollution soil purification.

Moreover, the company is currently developing a Green Bio City combining Smart Farm and Care Farm and a Smart City applying ICT and AI using big data.

An official from Hyundai E&C said, “Despite the difficult global economic environment, we will strengthen our fundamental competitiveness in design/technology/implementation and identify new future growth drivers to achieve a continued qualitative growth.”