Samsung E&A (028050) Q2 2024 earnings summary

Executive summary

• Achieved strong growth in new orders, reaching 10.9 Tn KRW in 1H 2024, up 185.9% year-over-year.

• Sales for 1H 2024 totaled 5,071.0 billion KRW, a slight decrease year-over-year, with operating profit of 471.9 billion KRW and net profit of 369.4 billion KRW.

• Non-chemical segment accounted for 57.2% of sales, with major clients including Samsung Electronics and Samsung Biologics; chemical segment contributed 42.8%, led by global oil and gas projects.

• Maintained strong order backlog, including record project wins in Saudi Arabia and continued expansion in the Americas and Asia.

Financial highlights

• Gross profit for 1H 2024 was 733.1 Bn KRW, with a gross profit margin (GPM) of 14.5%.

• Operating profit margin (OPM) for 1H 2024 was 9.3%.

• Net profit for 1H 2024 reached 369.4 Bn KRW, down 13.6% year-over-year.

• SG&A expenses increased to 261.2 Bn KRW in 1H 2024, with a ratio of 5.2%.

• Basic EPS for H1 2024 was 2,435 KRW.

Outlook and guidance

• New orders achieved 87% of annual guidance, sales 51%, and operating profit 59% as of 1H 2024.

• Hydrocarbon EPC order pipeline includes 14 projects totaling $21.5 Bn USD, with 8 projects ($11.4 Bn USD) expected in 2H 2024.

• Ongoing investment in R&D and green solutions to support future growth and ESG leadership.