Daewoo International profit rises

Jon · Korean Citizen Joined: Mar 19, 2004 Posts: 509

Daewoo International Corp. said yesterday that its 2004 sales and operating profit rose 21.5 percent and 23.1 percent respectively over the previous year on stable growth in overseas sales and thriving energy business.
Sales last year reached 5.01 trillion won, 17 percent more than its target, while operating profit climbed to 96 billion won. The tradiing company also rang up a net profit of 112.9 billion won, double 54.5 billion won in 2003.

Daewoo said it enjoyed brisk business in all of its business sectors, including steel, metal, chemical, car parts and energy. But the company said increase in exports and three-way trade in particular contributed to sales growth.

Operating profit, meanwhile, increased thanks to its 47 overseas operations and increased dividends from its overseas energy investment projects.

Daewoo is currently leading an oil exploration project off Myanmar jointly with Korea Gas Corp. and two Indian companies. In January, the company, which holds 60 percent share in the project, said it found a 93-meter gas layer.

The company is also part of a Korea National Oil Corp.-led gas field development project in Vietnam as well as an LGN project in Oman, also led by KNOC.

Daewoo said yesterday it also reduced its debt-to-equity ratio by 58 percent over the previous year to 155 percent, thanks to profit-centered management, better cash flows and early payment of long-term debts.

Daewoo International is a former unit of now-defunct Daewoo Group, which collapsed under a mountaln of debt after the 1997-1998 financial crisis. The company graduated from a debt workout program in 2003 and has been making steady improvement.

In its latest effort to dispose non-core businesses, the company sold its mobile communications unit, Daewoo Unitel CO. in Uzbekistan for $73.5 million to Netherlands-based, Silkway Holding in December.

Daewoo International shares yesterday gained 0.99 percent over the previous day to close at 10,250 won.

(mhkim@heraldm.com)

By Kim Min-hee

2005.02.04