POSCO Reports Operating Profit of 3.8689 Trillion KRW Last Year, Down 30.2% Year-on-Year (Comprehensive)

[Asia Economy Reporter Park So-yeon] POSCO announced on the 31st that its consolidated operating profit for last year was 3.8689 trillion KRW, a 30.2% decrease compared to the previous year.

Sales revenue decreased by 0.9% to 64.3668 trillion KRW, while net profit increased by 4.8% to 1.9826 trillion KRW.

POSCO stated that despite difficult sales conditions such as global economic slowdown, demand industry recession, and strengthened protectionism, as well as deteriorating profitability due to rising raw material costs like iron ore and coal, it sold 35.99 million tons, an increase of 400,000 tons compared to the previous year.

In particular, sales volume of the high value-added World Top Premium (WTP) products surpassed 10 million tons for the first time ever.

POSCO International achieved its highest operating profit due to strong production and sales from the Myanmar gas field, and POSCO Energy improved its operating profit through direct import of liquefied natural gas (LNG) and restructuring of fuel cells, leading to improved group company performance.

On a separate basis, sales revenue and operating profit recorded 30.3735 trillion KRW and 2.5864 trillion KRW respectively, down 0.9% and 32.1% from the previous year. Net profit increased by 9.6% to 1.1757 trillion KRW.

POSCO explained that despite the worsening market conditions, financial soundness has been strengthened.

The consolidated debt ratio decreased by 1.9 percentage points from the previous year to 65.4%, marking the lowest level since 2010. Net borrowings decreased by 1.5534 trillion KRW to 7.9782 trillion KRW, and cash on hand increased by 1.7857 trillion KRW from the previous year to 12.4634 trillion KRW, enhancing liquidity management.

A POSCO official stated, "Although there are fluctuations in domestic and international market conditions, we maintain higher profitability compared to global competitors based on the development and sales of high value-added steel grades, cost competitiveness through efficient production structures, sustained production competitiveness through continuous facility investment, and high responsiveness to market changes by securing diverse customers and product lines."

This content was produced with the assistance of AI translation services.