Daewoo Engineering & Construction's Q1 Profits Up 25.3%

Daewoo Engineering and Construction (E&C) attributed its first-quarter net profit increase of 25.3 percent to its cost-cutting efforts in its civil business division and plant division.

The builder posted a net profit of 61.9 billion won in the three months ending March 31, up from the 49.4 billion won it registered a year earlier.

While operating profit increased 22.7 percent to 120.9 billion won in the first quarter, sales went down 2.2 percent to 1.98 trillion won from the 2.03 trillion won it posted last year.

Daewoo E&C recently signed a piping contract worth US$50 million for the Tangguh Expansion Ph2, marking its entry to the Indonesian LNG liquefaction plant market.

The expansion is part of the Tangguh LNG Train 3 liquefaction plant construction project in Bintuni Bay, Papua Barat.

The project's main contractor Saipem, an Italian oil and gas industry contractor, requested for its Daewoo EC participation.

Daewoo E&C has an agreement with Saipem to establish a strategic partnership in the global LNG business.