Doosan Enerbility (034020) Q2 2024 earnings summary

Executive summary

• Orders declined 63.3% year-over-year in 1H 2024 due to a high base from large projects in 2023, but rebounded 99.4% sequentially in 2Q 2024.

• EBIT and net profit increased year-over-year in 1H 2024, driven by a higher share of profitable nuclear, gas turbine, and service businesses, as well as revaluation gains on NuScale stock.

• Consolidated sales and EBIT decreased year-over-year due to a peak-out effect in subsidiary performance, but net income rose on stock revaluation gains.

Financial highlights

• 1H 2024 managerial consolidated sales rose 1.3% year-over-year to KRW 3,515bn; EBIT up 23.2% to KRW 146bn; net profit up to KRW 123bn.

• Consolidated sales fell 3.9% year-over-year to KRW 8,248bn; EBIT dropped 22.3% to KRW 668bn; net profit increased to KRW 482bn.

• Net debt increased to KRW 2,527bn (managerial) and KRW 2,621bn (consolidated) as of 2Q 2024.

Outlook and guidance

• Annual order target of KRW 6.3tn maintained, with KRW 2.5tn orders achieved as of July 2024 and high probability of meeting the target through nuclear and CCPP projects.

• Revenue outlook revised up by 10.5% for 2028, driven by growth in large-scale nuclear, SMR, and gas turbine businesses.