Samsung Engineering wins biggest-ever $3.6 bn deal; shares surge

Samsung Engineering Co., a construction arm of Samsung Group, has clinched a 4.1 trillion won ($3.6 billion) deal to build part of a refinery facility in Mexico, in the single-largest project the South Korean company has ever won.

Shares of Samsung Engineering surged on the news, rising as much as 26% to a three-month high of 13,100 won on Friday, outperforming the broader Kospi market’s 1.4% fall.

Samsung Engineering said on Oct. 30 that its Mexican unit, in a consortium with other foreign builders, received an order to construct a refinery facility from a subsidiary of Mexico’s state-run oil company Pemex.

Under the Dos Bocas New Refinery Project to be constructed on Mexico’s southern Gulf coast, Samsung Engineering will be responsible for the engineering, procurement and construction (EPC) of the second and third of six total packages. 

The value of Samsung’s Bocas refinery project in Mexico rises to 4.5 trillion won when its front-end engineering design work, which it undertook early last year, is included.

With the latest deal, Samsung Engineering’s order backlog has risen to 16 trillion won. Samsung Engineering said it also expects to win a 1.13 trillion won EPC deal in Malaysia before year-end.

The South Korean company has undertaken various construction projects for Pemex since 2000.

Write to Sun A Lee at suna@hankyung.com
In-Soo Nam edited this article.