GS E&C Off and Running

GS E&C sees net profit in first three quarters rise 71 pct at 320 bln won

GS Engineering and Construction Co. recorded 1,429.7 trillion won in sales in the Q3, up 1 percent from the same period last year, to bring total sales for the year to Q3 to 4,025.9 billion won, down 5.1 percent YoY. The Q3 operating profit amounted to143.1 billion won, up 51 percent YoY with total operating profit for the year as of the end of September to 318.7 billion won, up 21.5 percent YoY.
The company's ordinary profit for Q3 came to 181.9 billion won, up 28.4 percent. Its ordinary profit up to Q3 for the year amounted to 443.6 billion won, up 67.8 percent YoY. Its net profit amounted to 132.2 billion won, up 30 percent YoY, bringing total net profit for the year to Q3 to 320.5 billion won, up 71.5 percent YoY.
GS E & C has become one of world-class EPC(engineering, procurement, and construction) contractors, specializing in the fields of plant industries. Areas of its experts cover oil refineries, gas processing plants, petrochemical plants, power plants, and environmental projection facilities.Thailand in September,
The GS E&C carried out a number of oil refinery projects at home including CDUs/VDUs and RFCCs for GS Caltex Oil and S-Oil. The company broke into overseas markets in the early 1990s and has achieved remarkable performances in the plant construction industry since then. The track record to date encompasses a refinery for Azerpetrochim in Azerbaijian, condensate splitter plants and LBCs for TPI in Thailand, a RFCC for CPC in Taiwan, a gas oil desulfurization unit for KNPC in Kuwait, a catalytic de-waxing plant for IOCL in India, and a $700 million QP Refinery expansion in Qatar. The company has also achieved success in gas processing facilities, a new strategic business area. Projects completed so far include the LPG terminal at Incheon, Korea and Shantu, China. Moreover, the company recently received a $1.6 billion order from the Iranian state-run oil company, NIOC, for gas processing facilities(phases 9 & 10) at the South Pars gas field, Iran. A firm foundation is now in place for stable growth in this new field.
The company has a high reputation for its petrochemical plant construction expertise, thanks to the advanced technology and know-how acquired from long experience. In Korea, the company has completed an ethylene/propylene plant for LG Petrochemical a polypropylene/BTX plant for LG-Caltex Oil, and a polypropylene plant in Indonesia, and VCM plant for TPC in Thailand, polyamide/polypropylene plant in Indonesia, and VCM/PVC plant in Saudi Arabia (the largest ever built at the time in the world). Recently, new orders have been received for LAB plant from ICIIC and Acetic Acid plant from NPC in Iran.
Power plants have been promoted as a mainstay business line for GS E&C. The company has gained substantial experience and know-how by completing combined cycle power plants at Ilsan and Bugok as well as coal-fired Power Plant No. 5 and 6 at Taean, South Chungcheong Province in Korea.
Other energy-related projects include LNG storage tanks at Incheon and Tongyeong: main gas supply pipelines for the Southern, West Coast and Gangwon regions: various crude oil stockpiling facilities and heat generator facilities for local communities. A specialized team has also been formed to prepare for the company for entry into nuclear power plant construction market.
One of the most surprising projects that the company won overseas is the Ho Chi Minh City Development Project. It includes the construction of a large urban town with a 54-storey highrise building, the XI Park Tower, the tallest in Vietnam, and four office, commercial and residential complexes, all of them to be completed by 2021 at the cost of $13 billion. The tower with apartments, and shopping malls will be built on a 4,000 pyeong lot in downtown Ho Chi Minh City. The project also includes the construction of an urban town on a 1 million pyeong land with 17,000 houses by 2019. The project is the largest one ever won by a Korean builder overseas, although it is a long-term project extending for more than a decade to 2021. The company got the project may be due to its construction of a 14km long highway outside Ho Chi Minh at the cost of $150 million and donated it to the Vietnamese government, reports said. The company will take time to complete the work according to the schedule to be completed in 12 to 15 years. nw

(from Left) LG Polycarbonate Plant by by GS E&C in Yeosu, South Jeolla Province. GS E&C Chairman Hur Chang-soo.