POSCO Inter, Quarterly Sales Near 10 Trillion Won... "Operating Profit and Net Profit Also Record High"

[Asia Economy Reporter Hyunseok Yoo] POSCO International has achieved its highest quarterly performance ever. This accomplishment was made amid various adverse conditions such as the global supply chain crisis and concerns over stagflation.

POSCO International announced on the 25th through a public disclosure that its first-quarter sales increased by 39.8% year-on-year to KRW 9.9123 trillion. Operating profit and net income rose by 70.2% and 75.5%, reaching KRW 216 billion and KRW 163.1 billion, respectively. These figures represent record highs in sales, operating profit, and net income. The operating profit significantly exceeded the previous record of KRW 180 billion in Q2 2019 and the market forecast of KRW 159.3 billion.

POSCO International’s strong performance is attributed to proactive risk management and creative sales activities based on a complementary portfolio in the steel, energy, and investment sectors. Despite instability in the global supply chain caused by logistics difficulties and the Shanghai lockdown, the trading division recorded an operating profit of approximately KRW 112.7 billion. This represents a 70% increase compared to the same period last year, driven by expanded exports and trilateral sales, price increases, and strong steel raw material trading.

The energy business saw operating profit rise by 94% year-on-year to KRW 42.9 billion, as sales prices increased amid ongoing exploration and development investment plans. The LNG supply business linked with group companies is also underway.

On the investment corporation side, the Indonesian palm oil business stood out. Despite supply shortages caused by the Russia-Ukraine war, operating profit rose by 78% year-on-year to KRW 34.5 billion. POSCO Mobility Solutions, a subsidiary producing electric vehicle drive motor cores, maintained steady sales, and overseas subsidiaries such as the Uzbek cotton mill also performed well, resulting in an overall operating profit increase of about 58% year-on-year to KRW 59.1 billion for the investment corporations.

POSCO International plans to accelerate performance creation in existing businesses to continue its growth this year. It also aims to focus on developing future businesses in eco-friendly sectors as part of evolving its business portfolio. To accelerate performance creation, the steel business will expand market presence through integration of group export channels and steel e-commerce business, while stabilizing the steel scrap procurement system in line with the global carbon neutrality trend. The company will also promote increased and optimized gas production at Senex Energy in Australia, which was acquired last month, and plans to expand sales and profits in the food sector.

In line with the group’s policy to pursue eco-friendly future material companies, POSCO International will intensify efforts to foster the eco-friendly vehicle parts business. According to the global production roadmap for drive motor cores, the company aims to establish a production system of 7 million units by 2030 and achieve a 20% global market share. Production plants will also be established in Mexico and Europe. Additionally, by discovering and focusing on new businesses in eco-friendly future industries such as bioplastics, biodiesel, and blue hydrogen, the company plans to enhance sustainability.

At the corporate briefing held on the same day, POSCO International stated, “We will secure future growth engines and achieve management goals through business strategies reflecting the changing global business environment,” and added, “We will enhance corporate and shareholder value based on steady performance creation and global market expansion.”

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