South Korean conglomerate Doosan Group’s balance sheet significantly improved, being lighter through rigorous streamlining over the last two years.

Doosan Corp., holding company of Doosan Group, said in a disclosure statement on Monday that consolidated net profit reached 181.2 billion won ($159.6 million) for the second quarter ended on June 30, 2016, whopping 767.8 percent jump from the same period last year. Operating income marked 306.3 billion won, 33.2 percent jump on year.

Doosan’s total sales diminished by 7.6 percent over year to 4.3 trillion won in the second quarter because it sold off divisions manufacturing machine tools, defense, and heat recovery steam generator worth 2.5 trillion won earlier this year. Having become leaner, its profit margin improved to 7.2 percent from 4.1 percent.

Doosan Infracore Co., group’s machinery manufacturing arm boosted its profit margin to 10.7 percent from 4.7 percent in just a year. Market observers say its operating income gained by 226.8 billion won through reduction in labor expenses, fixed costs, and purchasing fees.

Doosan Heavy Industries & Construction Co.’s operating profit improved 58 percent on year to 262.4 billion won in the second quarter. It is expected to embark on new orders in the second half including Song Hau coal-fired thermal power plant construction in Vietnam and seawater desalination plant construction in Kuwait.

Doosan during the last two years offloaded a number of assets and raised 3.6 trillion won. It sold Montabert, French construction equipment making subsidiary under Doosan Infracore Co. to a U.S. enterprise at 135 billion won June last year. This year, it sold off its defense unit Doosan DST, stake in Korea Aerospace Industries, machine tools business, and heat recovery steam generator.

The company also has a large-scale initial public offering of its construction equipment Doosan Bobcat planned in the second half. Once the listing is completed, the group’s debt is expected to fall to around 8 trillion won from the current 11 trillion won.

By Kim Jung-hwan

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