POSCO International Q2 Operating Profit 134.4 Billion KRW... "Strong Performance in Food and Gas Field Businesses"

[Asia Economy Reporter Suyeon Woo] Despite the contraction of global demand industries due to the impact of the novel coronavirus disease (COVID-19), POSCO International recorded solid second-quarter results, supported by the expansion of its food business and stable sales from the Myanmar gas field.

On the 21st, POSCO International announced through a public disclosure that it recorded sales of 5.252 trillion KRW, operating profit of 134.4 billion KRW, and net profit of 90.5 billion KRW in the second quarter of this year. These figures represent decreases of approximately 18% in sales, 25% in operating profit, and 25% in net profit.

In the second quarter, concerns arose over the decline in performance of cyclical industries due to delayed recovery in demand industries such as steel, chemicals, and parts amid the global economic downturn caused by COVID-19. POSCO International minimized the decline in profits through proactive cost reduction and risk management measures such as reducing credit transactions. In particular, the food business, one of the strategic businesses, saw improved transaction volumes through expanded sales of soybeans and corn to China and Vietnam, along with stable operation of global investment infrastructure.

Additionally, in the energy business, despite a slight decline in sales prices of the Myanmar gas field due to falling oil prices, the company maintained steady sales volume by selling 50 billion cubic feet in the second quarter, averaging 550 million cubic feet per day, and LNG trading achieved a total transaction volume of 1 million tons in the first half of the year.

A POSCO International official stated, "From the second half of the year, the growth of the food business continues with the full-scale expansion of the Ukraine grain terminal operation," adding, "We plan to continuously strengthen the value chain of strategic businesses such as E&P and LNG."

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