South Korean engineering giant Samsung E&A reported a decline in revenue and profits for the second quarter of 2024 compared to the exceptional one-off performance in second quarter 2023, even as its order backlog grew, thanks to a substantial contract win in Saudi Arabia.

The company reported revenue of 2.68 trillion won ($1.94 billion), an operating profit of KRW262.6 billion ($190 million), and a net profit of KRW205.3 billion won ($148 million) for the second quarter of 2024. These figures represent declines of 3.6 percent, 23.8 percent, and 18.3 percent, respectively, compared to the same period last year.

The company said that the despite posting lower figures, they beat market consensus revenue of KRW2.56 trillion ($1.9 billion) and operating profit of KRW201.1 billion ($146 billion).

During the quarter, Samsung E&A secured KRW 9.5 trillion ($17.4 billion) in new orders, including the key Fadhili Gas Project in Saudi Arabia, taking the total value of first half orders to KRW10.9 trillion ($8 billion) or 86.6 percent of the annual order target of KRW12.6 trillion.

The company's order backlog at the end of the second quarter reached KRW24.1 trillion ($17.4 billion), ensuring a stable workload for the next two years and three months.

For the first half of 2024, the company achieved revenue of KRW5.71 trillion ($4.1 billion), an operating profit of KRW471.9 billion ($340 million), and a net profit of KRW369.4 billion ($267 million), surpassing half of its annual targets.

A Samsung E&A spokesperson attributed the “solid performance” to effective settlement and cost management in late-stage hydrocarbon projects, alongside a stable profit structure in the industrial environment sector.

Looking ahead, the company plans to sustain growth through meticulous project management, with a focus on acquiring profitable orders and enhancing performance across all project phases. Furthermore, SAMSUNG E&A aims to expand its involvement in the energy transition sector to drive mid- to long-term growth.

(1 US Dollar = 1,385 South Korean Won)

(Editing by Anoop Menon) (anoop.menon@lseg.com)

Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa