Seoul: Hyundai Group, the preferred bidder for Hyundai Engineering & Construction Company, plans to target contracts in Brazil and Russia to help the builder increase orders almost 10-fold by 2020.
South Korea's largest construction company may receive 150 trillion won (Dh487 billion) of new orders in 2020 from 15.7 trillion won last year, the group said yesterday in an e-mailed statement.
Sales may climb to 60 trillion won from 9.3 trillion won, it said.
Hyundai Group also said operating profit may jump more than 10-fold to 5 trillion won as it seeks to allay concerns about plans to buy 35 per cent of Hyundai Engineering for a price said to be more than double the market value.
The group's largest unit, Hyundai Merchant Marine Co, has tumbled 21 per cent in Seoul trading since Hyundai Group was named preferred bidder for the controlling stake last week.
Hyundai Engineering will target Brazil and Russia as rising oil prices stoke investment in refineries and energy pipelines.
Petroleo Brasileiro is working through the world's largest oil-exploration plan.
The construction company has previously won contracts for energy projects in countries including the UAE, Indonesia and Kuwait.
Hyundai Group will also help Hyundai Engineering develop reclaimed land near Seoul into an environmentally friendly industrial complex and housing, it said.
The construction company earned 52 per cent of revenue in South Korea last year, and 38 per cent in the Middle East.
Hyundai Engineering fell 3.5 per cent to 60,200 won in Seoul trading. Hyundai Merchant declined 3.9 per cent to 35,700 won.
