[Edaily Reporter LEE DAWON ] DL E&C CO., LTD. has maintained its “AA- (Stable)” credit rating—the highest in the construction industry—in a regular credit rating assessment by NICE Credit Rating. By retaining this rating for the eighth consecutive year since 2019, the company has once again been recognized for its stable business competitiveness and financial soundness.

DL E&C CO., LTD. announced on the 25th that NICE Credit Rating had affirmed its existing credit rating of “AA- (Stable)” based on its diversified business portfolio, excellent business competitiveness, and stable business foundation.

NICE Credit Rating cited the recovery in profitability driven by improved cost ratios in the housing sector, stable cash generation, and excellent financial stability as the main grounds for its assessment.

It also viewed positively the fact that profitability is recovering rapidly as the proportion of projects started during the recent period of soaring construction costs has decreased and cost ratios in the housing business have improved.

In fact, DL E&C CO., LTD. recorded an operating profit of 157.4 billion won on a consolidated basis in the first quarter of this year, a 94.3% increase compared to the same period last year. The operating profit margin stood at 9.1%, up 4.6 percentage points from the same period last year, while net income rose 429.5% to 160.1 billion won.

The company’s financial structure was also rated among the best in the industry. The average free cash flow over the past five years stood at 2629억 won, with net cash of 1조 2802억 won and a debt-to-equity ratio of 87.5% as of the end of the first quarter of this year.

NICE Credit Rating projected that robust cash flow would continue going forward, based on excellent sales performance and a stable business structure.

Regarding the recent notice from Saudi Arabian tax authorities regarding the imposition of corporate income tax, the agency assessed that the impact on business and financial stability in the short to medium term would be limited, considering that there are currently no ongoing projects in the country and that the company plans to pursue an appeal process without paying the tax.

An official from DL E&C CO., LTD.’s Financial Management Division stated, “Through this credit rating assessment, our excellent business competitiveness, stable business foundation, and industry-leading financial stability have once again been recognized,” adding, “Based on profitability-focused sound management and thorough risk management, we will continue to achieve steady performance improvements and enhance corporate value.”