Samsung E&A third-quarter operating profit jumps 183.6 percent on chemical and chip projects

Samsung E&A said Thursday its third-quarter operating profit rose 183.6 percent from a year earlier to 501 billion won ($375 million), as large chemical and advanced-industry projects moved into full execution and cost controls improved margins.

Revenue for the quarter reached 2.91 trillion won ($2.18 billion), up 45.8 percent from the same period last year, the company said in a regulatory filing. It did not disclose net income.

Samsung E&A attributed the sales increase to major chemical and advanced-industry projects being recognized in earnest, and the profit gain to disciplined project cost management and to execution methods built on artificial intelligence, digital twin technology and robotics.

"With revenue from large chemical and advanced-industry projects now being reflected in earnest, productivity and profitability have improved significantly through thorough project cost management and technology-based innovation in how we execute work," a company official said.

Samsung E&A has won 17.1 trillion won ($12.8 billion) of work so far this year, and its order backlog stands at 27.2 trillion won ($20.4 billion), roughly three years of revenue at last year's 9 trillion won.

The company raised its full-year guidance on both counts, lifting its order target to 19 trillion won ($14.2 billion) from 12 trillion won and its operating profit forecast to 1.4 trillion won ($1.05 billion) from 800 billion won.

It also said it would buy back 780 billion won ($584 million) of its own shares and cancel 690 billion won ($516 million) of them.

Samsung E&A said it aims to keep order intake and earnings on an even keel by combining its backlog with tighter project management and differentiated execution, and to build a base for medium- and long-term growth through balanced expansion across its chemical, advanced-industry and new-energy businesses.