POSCO INTERNATIONAL CORPORATION Exceeding one trillion won in operating profit for the first time,
POSCO INTERNATIONAL led to increased sales in the trading division and increased profits in the energy division, showing outstanding performance in both sectors
- The financial outcome of the combined corporation is disclosed to be 41.7 trillion won in sales with an operating profit of 1.174 trillion won
- The company plans to complete its value chain through a 3.8 trillion won investment in the eco-friendly energy sector over three years until 2025
- The company is transforming into an eco-friendly integrated corporation through balanced growth in the trading and energy sectors
Having recently completed its merger with POSCO ENERGY, POSCO INTERNATIONAL made a full-scale leap forward as an integrated corporation, exceeding one trillion won in operating profit as a combined corporation for the first time in its history.
POSCO INTERNATIONAL announced at a company briefing held on the 27th day of this month that it had achieved annual sales of 41.7 trillion won, operating profit of 1.174 trillion won, and net profit of 805 billion won in 2022*. This is an increase of 16.1% in sales and 48.8% in operating profit compared to 2021* sales of 35.925 trillion won and operating profit of 789 billion won, respectively, led by the trading division in sales and the energy division in profits.
* Based on simply combined outcome of POSCO INTERNATIONAL and POSCO ENERGY in 2022 and 2021
Particularly taking into account the high interest rates, the supply chain crisis, and the global economic recession, the notable performance of both sectors highlights the company's unwavering strength and competitive advantage despite the difficult circumstances.
The breakdown of outcome by business division shows that the energy sector generated more than half of the company's total profit, recording approximately 5.3 trillion won in sales and 640 billion won in operating profit. In particular, the resource development business alone yielded an operating profit of approximately 370 billion won, thanks to the stable operation of overseas gas fields including the one in Myanmar and the other operated by Senex Energy in Australia. The terminal and the electricity generation business also recorded approximately 270 billion won in profit, attributable to the increase in LNG prices and the wholesale electricity prices.
With approximately 36.4 trillion won in sales and 530 billion won in operating profit, the trading division accounted for most of the company's sales. POSCO's volume of steel sales exceeded 10 million tons for the first time in its history, and the trading business generated an operating profit of 300 billion won, thanks to the strong performance of overseas trading subsidiaries.
In addition, the trading and investment subsidiaries recorded an operating profit of 230 billion won thanks to the rising palm oil prices and sales volume as well as the rising bituminous coal prices and an increase in the sales volume of traction motor cores, all of which contributed to building a stable profit portfolio in the trading and investment businesses.
POSCO INTERNATIONAL plans to achieve balanced growth through aggressive investments in both energy and trading sectors this year, thereby becoming a 'globally integrated corporation' with internationally recognized competitiveness as an energy specialist in addition to the title of the top general trading company in Korea.
In the energy sector, the company is anticipating the raised awareness of its brand as an energy-specialized company by integrating the entire LNG value chain from exploration and production to storage and power generation through an investment of 3.8 trillion won over three years until 2025.
In the upstream sector, where energy resources are developed and produced, it plans to increase gas production of Senex Energy in Australia with additional facilities, on top of launching the field exploration projects in Malaysia and Indonesia.
In terms of midstream and downstream areas, each referring to transportation and supply of energy to consumers, POSCO INTERNATIONAL hopes to expand its Gwangyang LNG Terminal and to accelerate the growth of terminal-related businesses, including LNG bunkering as well as LNG storage and sales.
Moreover, it expects to gradually promote eco-friendly energy businesses, such as the production of green hydrogen, the generation through hydrogen co-firing powerplant, and the development of new renewable energy, based on its stable energy portfolio.
The trading division will be continuing its investment in new growth businesses, such as agro and traction motor cores to strengthen its competitiveness as a company specialized in global business.
The steel business will be working towards enhancing its stable supply chain for steel and secondary cell materials while actively developing new demand for future growth industries. With Pohang Steelworks now fully restored, this year's steel trading is expected to be 13.85 million tons in sales, a slight increase compared to last year.
As for the agro division, the firm will be actively developing high value-added markets by securing additional palm plantations in Indonesia to increase palm oil production and building a palm oil refining plant with a production capacity of 500,000 tons by 2025 through a 200-million-dollar investment. With the plantations' palm trees reaching maturity, the palm oil sales this year is expected to reach 194,000 tons, which is a 10% increase from last year.
With regard to traction motor cores, which is a key component of eco-friendly vehicles, the company plans to establish a supply system with a global volume of more than 7 million units by 2030 by expanding its overseas production bases, including those in China, North America, and Europe, on top of its domestic production capacity of 2 million units. The sales volume this year is forecasted at 2.27 million units, a near 50% increase from the previous year, thanks to the operation of the Mexico plant and the expanded operation of the Pohang plant in the second half of 2023.
"We will be achieving balanced growth in the energy and trading sectors to become a globally integrated business corporation that ranks among Korea's top 10 companies," POSCO INTERNATIONAL Vice-chairman Jeong Tak said. "Our goal is to reach this milestone while making everyone in our company happy."
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Posco International Corporation published this content on 01 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 February 2023 09:07:04 UTC.
