POSCO INTERNATIONAL CORPORATION - Announced sales of KRW 8.0459 trillion and operating profit of KRW 311.7 billion for the third quarter on the 24th
- Already surpassing the previous year's annual performance by achieving the cumulative operating profit of KRW 948.5 billion for the third quarter
- Set up a supply chain to annually import 90,000 tons of graphite from Africa while reinforcing the raw material supply for secondary battery
- Selected energy, materials, and agri-bio businesses as its three core businesses as it evolves into a 'platform company'
Despite an uncertain business environment, POSCO INTERNATIONAL continues its growth momentum by generating stable profits and is now nearing the achievement of a KRW 1 trillion operating profit.
On the 24th, POSCO INTERNATIONAL (Vice Chairman Jeong Tak) publicly announced that the company's third-quarter sales reached KRW 8.0459 trillion with an operating profit of KRW 311.7 billion. Despite a year-on-year decrease of 11% in sales, the company saw a 58% increase in its operating profit.
The cumulative revenue for the third quarter reached KRW 25.2234 trillion with an operating profit of KRW 948.5 billion. This is expected to surpass the annual operating profit of KRW 902.5 billion achieved in 2022 and easily reach an annual operating profit of KRW 1 trillion this year.
The notable year-on-year improvement in profitability is mainly due to the addition of revenue from the terminal and power generation businesses in the energy sector after the merger as well as the increase in sales volume and profit margin of eco-friendly industrial materials in Europe in the global sector.
The energy sector achieved stable profits of KRW 892.2 billion in sales and KRW 187 billion in operating profit, supported by the completion of the LNG business value chain.
Operating profit in the E&P business also improved due to higher sales volumes from gas fields in Myanmar and increased power generation utilization due to increased electricity demand in the summer.
Its global business reported sales of KRW 7.1537 trillion and an operating profit of KRW 124.7 billion, demonstrating solid growth despite the escalating risks of trade barriers.
The steel and green materials sector outperformed by responding actively to market changes with green materials and high-quality products, such as high tensile steel and PosMAC, despite a decrease in sales volume and selling price due to European tariffs.
The company aims to maintain its growth momentum by further expanding its operations in the energy and eco-friendly sectors.
In particular, the company plans to diversify its energy exploration and development areas to Myanmar, Australia, Malaysia, and Indonesia, and to actively create value chain synergies with its terminal and power generation businesses by importing natural gas produced overseas directly into Korea.
Furthermore, the company will continue to bolster the supply chain of raw materials for secondary battery by establishing the system that supplies 90,000 tons of graphite annually, while continuing to expand the global production base of traction motor cores.
Also, its CCS business will gradually extend its reach to Australia and Southeast Asia, beginning with the U.S. market. The palm refinery plant will also be established in Indonesia through a joint venture with GS Caltex to further enhance the value chain, while actively developing new high-value-added businesses by preempting the global bio-based raw materials market.
"We are expecting a harsher global business environment as risks in the Middle East are newly emerging following the Russia-Ukraine war," a POSCO INTERNATIONAL official said. "However, the energy business that we have been working on is expected to shine even brighter amid these changes. We will also endeavor to manage the risks associated with the changing business environment."
Meanwhile, POSCO INTERNATIONAL is accelerating its efforts to evolve into a 'platform company' by rapidly shifting its business structure from eco-friendly to green survival, while selecting and intensively fostering energy, materials, and agri-bio as its three core businesses.
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Posco International Corporation published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 November 2023 22:46:06 UTC.
