GS E&C expected to achieve 3-digit operating profit

GS Engineering & Construction is on its way to reaping record-high earnings this year, on the back of Korea’s booming housing market, according to figures from financial information provider FnGuide on Thursday.

The company had to restructure its business portfolio following its worst fiscal performance in 2013 when it recorded an operating loss of 950 billion won ($844.5 million). However, GS E&C is expected to post three-digit operating profit growth this year. Its growth performance is expected to continue to improve throughout next year.

On the back of a sharp increase in orders, the company’s operating profit this year is projected to jump 175.73 percent compared to last year, reaching 394.2 billion won, according to FnGuide. Its net profit is estimated to reach 197.9 billion won.

Last year, its operating profit rose 17.13 percent to 143 billion won compared to the previous year, with a net profit of 204 billion won. Its revenue surpassed 11 trillion won last year, the highest since its founding, and up 4.38 percent on-year. The company’s revenue is expected to grow 7.85 percent by the end of this year.

Following its poor performance in 2013, GS E&C said it has sought to improve earnings over the past few years by downsizing operating costs, making bold investments and operating in “emergency mode.”

By Julie Jackson (juliejackson@heraldcorp.com)