POSCO International, Q2 Operating Profit of KRW 349.7 Billion…Down 2.1% YoY

산경투데이 2024.07.26 조회수

POSCO International announced its 2024 Q2 business results through a disclosure on the 25th.

The company’s Q2 results showed a revenue of KRW 8.2823 trillion, a 6.7% increase from the previous quarter, and an operating profit of KRW 349.7 billion, a 31.8% increase. The operating profit margin also rose by 0.8 percentage points to 4.2%, surpassing the record high of 4.0% from the same period last year.

According to the earnings release, the strong performance in the energy business led to an operating profit that exceeded the market consensus of KRW 279.2 billion by 25%, surpassing market expectations for the second consecutive quarter.

On a half-year basis, the company recorded revenue of KRW 16.0428 trillion and an operating profit of KRW 615.1 billion, indicating the potential to achieve an annual operating profit of over KRW 1 trillion this year.

POSCO International also strengthened its financial soundness. Q2 borrowings amounted to KRW 5.8755 trillion, and the net debt ratio was 71%, both of which decreased by KRW 499.6 billion and 8.9 percentage points, respectively, compared to the previous year. This helped maintain a stable cash flow based on EBITDA of KRW 484.2 billion.

In the energy business, the company recorded an operating profit of KRW 199.6 billion, significantly increasing profits due to increased sales from overseas gas fields.

The power generation business achieved solid results with a significant improvement in the capacity utilization rate compared to the previous year, despite the off-season.

In the materials business segment, which includes steel and eco-friendly sectors, the company recorded an operating profit of KRW 147.6 billion.

Despite the deterioration in raw material market conditions and limited growth in the electric vehicle market, the company continued to generate stable profits by diversifying its portfolio into eco-friendly car parts, palm business, secondary battery materials, and high-function steel materials.

The drive motor core business, despite sluggish demand for electric vehicles, sold products for 430,000 units globally, recording KRW 81.2 billion in sales.

POSCO International plans to solidify its future growth foundation by balancing strategic businesses such as energy and materials and new businesses in the second half of the year, despite unstable external environments such as geopolitical risks, falling raw material prices, and weak product demand.

The company aims to expand the entire value chain based on its unique E&P capabilities, being the only private company in Korea capable of exploring, developing, producing, and selling deep-sea natural gas fields overseas.

Its energy subsidiary, Senex Energy, is expected to accelerate its ‘2025 Triple Production Increase’ plan after passing the Australian Federal Government’s environmental approval.

New explorations in Malaysia and Indonesia are also progressing stably.

In the terminal business, the company plans to expand storage capacity through the comprehensive completion of the Gwangyang LNG Terminal No. 1 and the construction of LNG Terminal No. 2, aiming to secure a firm position in the new ship commissioning and bunkering market.

The drive motor core business, despite the shrinking demand for electric vehicles, plans to increase its market share by expanding its global production infrastructure.

The company secured an additional 2.7 million units in orders in Q2 alone, with a total of 28.36 million units secured by 2030. The Mexico plant is focusing on the production and orders of products for electric and hybrid vehicles, while the Poland plant, scheduled for completion in mid-next year, plans to meet the local electric vehicle demand of Hyundai-Kia Motors in Europe.

A POSCO International IR representative stated, “Thanks to strong performance not only in the traditional trading sector but also in energy, mobility, and food businesses, we achieved the highest quarterly operating profit margin since our foundation,” adding, “In the second half, we will actively enhance shareholder value based on consistent profit generation.”