Samsung E&A, a number one participant in Korea’s engineering business, is on the verge of securing large-scale abroad tasks early this 12 months. The size of three main abroad plant contracts exceeds 11 trillion gained, strengthening prospects that the corporate is very prone to obtain record-breaking efficiency this 12 months amid excessive trade charges.
In response to business sources on Jan. 11, the aggressive bidding outcomes for Saudi Arabia’s SAN-6 Blue Ammonia Mission, wherein Samsung E&A is collaborating, are scheduled to be introduced as early as this month. Saudi Arabia’s blue ammonia undertaking is a large-scale hydrogen and ammonia plant development undertaking promoted by Sabic, the state-owned chemical firm. The engineering, procurement, and development (EPC) contract scale is thought to be $3.5 billion (roughly 5.1 trillion gained). Whereas Samsung E&A is competing with India’s L&T and Japan’s JGC, which additionally participated within the bidding, it has been thought-about a number one candidate since final 12 months resulting from its superiority in know-how, supply stability, and value competitiveness.
Samsung E&A has additionally been reported to have just about secured participation in a inexperienced methanol plant EPC undertaking estimated at $2 billion in Mexico. Beforehand, Samsung E&A Mexico, Samsung E&A’s native subsidiary, shaped a consortium with native firm Techint E&C and signed a associated memorandum of understanding (MOU) with the undertaking proprietor, Transition Business, in July final 12 months. Though the development schedule for the Mexico inexperienced methanol plant has been delayed, it’s reported that solely contract signing with the Samsung E&A consortium stays.
Moreover, observations from the native area counsel that Samsung E&A’s $2.5 billion large-scale petrochemical undertaking, which is underneath negotiation by way of non-public contract within the Center East, can be extremely prone to be confirmed throughout the first quarter. Samsung E&A has been pursuing this undertaking since final 12 months, however formal contract signing has been delayed resulting from postponed inside schedules of the undertaking proprietor, together with enterprise feasibility evaluate and approval procedures.
If Samsung E&A succeeds in securing contracts for these three tasks being pursued within the Center East and Latin America, the order worth alone would exceed 11 trillion gained, surpassing the report most income of 10.625 trillion gained recorded in 2023. This is able to additionally strategy the efficiency goal of 11.5 trillion gained that Samsung E&A introduced as its order objective final 12 months.
Along with these three tasks that Samsung E&A is prone to safe throughout the first quarter of this 12 months, quite a few large-scale improvement and development tasks are awaiting contracts. Samsung E&A additionally plans to speed up securing the primary contract for the Louisiana sustainable aviation gas (SAF) undertaking in the US, for which it signed a front-end engineering design (FEED) contract in December final 12 months. The whole undertaking scale is thought to be $3 billion. Moreover, Qatar’s petrochemical urea plant undertaking ($4 billion) and Saudi Arabia’s Khafji gasoline growth program ($2 billion) are additionally evaluated as large-scale tasks that Samsung E&A is very prone to safe this 12 months.
If contracts for these abroad tasks are efficiently concluded, Samsung E&A is predicted to surpass the record-high 2024 order efficiency of 14.4 trillion gained from abroad tasks this 12 months. The continued excessive efficiency of the won-dollar trade charge, fluctuating round 1,460 gained since early this 12 months, can be an element heightening expectations for efficiency enchancment.
Samsung E&A is projected to point out extra pronounced efficiency enchancment this 12 months, as final 12 months’s efficiency was anticipated to sluggish in comparison with the earlier 12 months resulting from delays in vitality transition enterprise outcomes. In response to FnGuide, Samsung E&A’s income final 12 months is predicted to lower by 10.5% year-on-year to eight.9157 trillion gained, and working revenue is predicted to lower by 25.5% to 723.7 billion gained.
A monetary funding business insider analyzed, “Samsung E&A will present vital efficiency enchancment this 12 months because the chemical business sector performs properly and income from present orders within the non-chemical business sector begins to be absolutely mirrored.”
