[Click eStock] "POSCO International Expected to Exceed Q4 Earnings Estimates"

[Asia Economy Reporter Song Hwajeong] Hana Financial Investment forecasted on the 17th that POSCO International's fourth-quarter earnings will exceed market expectations (consensus) and maintained a 'Buy' investment rating with a target price of 300,000 KRW.

Hana Financial Investment estimated POSCO International's fourth-quarter sales and operating profit at 8.9 trillion KRW and 164.5 billion KRW, respectively. These figures represent increases of 58.1% and 88.4% compared to the same period last year. Yuje-seon, a researcher at Hana Financial Investment, explained, "POSCO International's fourth-quarter performance will surpass the consensus. The decline in steel product sales volume was offset by increased sales performance of steel raw materials, and despite the drop in steel product prices, the margin stabilization trend is expected to continue."

Recovery in Myanmar gas field performance and the acquisition of Senex Energy in Australia are expected to drive significant growth next year. POSCO International announced on the 12th that it signed a stock acquisition agreement for Senex Energy and a joint investment agreement with Hancock for the acquisition of Senex Energy. The total acquisition cost is 770.9 billion KRW, with POSCO International investing 50.1% and Hancock 49.9%. Senex Energy holds onshore gas field assets in eastern Australia, with reserves of approximately 802 billion cubic feet (802 Bcf) and an annual production performance of 19 Bcf. Researcher Yu said, "The acquisition of Senex Energy shares is expected to be completed in the first quarter of next year. With rising natural gas prices, earnings visibility is increasing, and once consolidated, it is expected to contribute to dual growth." He added, "In the mid to long term, this acquisition is not only an asset that can perform blue hydrogen production demonstration and commercialization but also has geographic advantages that allow expansion into the green hydrogen business, which should be viewed positively."

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