Doosan Enerbility (034020) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 was ₩11,643.9 billion, down from ₩17,589.9 billion year-over-year, with operating income at ₩782.7 billion, a decrease from ₩1,467.3 billion in the prior year.

• Net income attributable to controlling interests was ₩225.3 billion, up from ₩55.6 billion year-over-year, while total net income was ₩455.3 billion.

• Orders decreased year-over-year due to a high base in 2023 and order concentration expected in Q4, but remain on track to meet annual targets.

• EBIT improved year-over-year due to high-margin project sales and reduced SG&A expenses, while net profit increased, driven by valuation gains on NuScale shares.

• Doosan Bobcat earnings declined due to US policy uncertainty and dealer inventory adjustments, impacting consolidated results.

Financial highlights

• Gross margin for the period was ₩2,000.4 billion, with an operating margin of 6.7%.

• Cash flow from operations was negative at -₩948.0 billion, compared to positive ₩1,412.4 billion in the prior year.

• Total assets stood at ₩25,264.6 billion, with liabilities at ₩13,894.7 billion and equity at ₩11,369.9 billion.

• Net debt increased to KRW 3.2tn (managerial) and KRW 3.6tn (consolidated) as of 3Q24.

• Liability/equity ratio improved to 128.8% (managerial) and 122.2% (consolidated) as of 3Q24.

Outlook and guidance

• The company is focusing on expanding its portfolio in clean energy, hydrogen, and wind power, with significant investments planned for SMR (Small Modular Reactor) and gas turbine capacity.

• High visibility on achieving the annual order target of KRW 6.3tn, with strong pipeline from preferred bidder status and on-hand projects.

• Anticipates more than 10 orders for Korean nuclear reactors over the next five years.

• Expects significant growth in gas turbine business, with revenue projected to increase tenfold by 2038.

• Ongoing R&D and capital expenditures are aimed at maintaining competitiveness in strategic products and future growth areas.