Shinsung E&G signalled a second-quarter rebound as it sustains sales growth on a surge in orders. Shinsung E&G said it posted first-quarter revenue of 153.7 billion won and an operating loss of 2.2 billion won. Revenue rose 32.1 percent from a year earlier and the operating loss narrowed 57.4 percent.

Temporary factors in the two business units contributed to the continued operating loss. In the renewable energy (RE) segment, market supply disruptions and shipment delays weighed. In the clean environment (ENG) segment, initial costs for new projects and deferred sales had an impact.

The company limited the cause of the first-quarter loss to external variables and start-up costs. A company official said, "This first-quarter operating loss was due to temporary factors such as increases in raw material and labour costs stemming from the U.S.-Iran conflict and initial construction costs for new projects, and there has been no change in the competitiveness of our core business."

Revenue was 153.7 billion won, similar to the previous quarter's 152.6 billion won. Operating profit, however, swung to a loss of 2.2 billion won from a profit of 2.9 billion won in the previous quarter.

The order trend contrasted with the performance. First-quarter orders jumped 203 percent from a year earlier, expanding the base for future revenue recognition.

The clean environment (ENG) segment grew 41 percent from a year earlier. It exceeded its sales target on the Taylor project in the United States, and new orders for LG Energy Solution's Arizona project supported growth.

The renewable energy (RE) segment saw a slowdown in short-term performance due to market supply conditions and shipment delays. The company expects gradual revenue expansion and improved profitability, citing module line improvements and clearer visibility on orders in the first half.

The company sees the second quarter, when expanding orders and revenue recognition align amid a semiconductor supercycle, as the starting point for a performance rebound. The official said, "As order growth driven by the semiconductor supercycle is gathering pace and the external environment has also turned favourable, we expect a rebound to become visible from the second quarter," and added.