POSCO Holdings Posts 2 Trillion KRW Operating Profit for Second Consecutive Quarter... Steel and Future Materials Boost (Update)

Raw Material Prices Surge... Steel Sector Profit Increase
Strong Performance in Future Materials Business Including Battery Materials
Annual Sales Forecast Raised from 77.2 Trillion to 86 Trillion

[Asia Economy Reporter Oh Hyung-gil] POSCO Holdings achieved operating profits in the 20 trillion KRW range for the second consecutive quarter.

POSCO Holdings announced on the 21st that its consolidated sales for the first half of the year reached 44.3 trillion KRW, a 28.8% increase compared to the same period last year. Operating profit rose 15.8% year-on-year to 4.4 trillion KRW, and net profit grew 23.3% to 3.7 trillion KRW.

Despite the global economic downturn caused by soaring raw material prices and realized inflation, profit growth in the steel sector and strong performance in eco-friendly infrastructure and future materials businesses continued operating profits in the 20 trillion KRW range following 2.3 trillion KRW in the first quarter.

Steel business company POSCO saw increases in both sales and operating profit compared to the previous quarter due to higher selling prices and cost reduction efforts, despite reduced production volume caused by increased raw material costs and major equipment repairs. Overseas steel operations also maintained operating profit levels from the previous quarter through product mix adjustments and hot-rolled product sales conversion at Krakatau POSCO, as well as expanded exports by PY Vina.

The eco-friendly infrastructure and future materials sectors showed profit improvements across the board, including ▲ POSCO International’s steel, gas fields, and food materials businesses ▲ POSCO Engineering & Construction’s continued urban redevelopment project orders ▲ POSCO Chemical’s cathode materials division. However, POSCO Energy experienced profit declines due to reduced power demand, price drops, and soaring LNG prices.

Additionally, POSCO Holdings announced key achievements in its secondary battery materials and energy businesses on the same day.

In the raw materials segment of the secondary battery materials business, POSCO Argentina commenced construction of upstream and downstream brine lithium processes, and SNNC began construction of a nickel conversion investment facility with an annual capacity of 20,000 tons. In the cathode and anode materials segments, POSCO Chemical established a joint venture cathode materials corporation with GM, and is pursuing expansions of the Gwangyang cathode materials plant by 60,000 tons annually and the Sejong natural graphite anode materials plant by 10,000 tons.

In the recycling sector, the construction of PLSC in Poland was completed, and Gwangyang HY Clean Metal is scheduled for completion within the year.

In the next-generation battery materials field, POSCO established POSCO JK Solid Solution, a solid electrolyte production corporation, invested in Taiwanese all-solid-state battery company ProLogium, and acquired Terra Technos, which has secured silicon anode material production technology.

In the energy business, POSCO International confirmed a threefold increase in gas production at Senex Energy in Australia, acquired in April, and POSCO Energy expanded its midstream business through the expansion of the Gwangyang LNG Terminal 2.

Meanwhile, POSCO Holdings raised its consolidated annual sales forecast from the previous 77.2 trillion KRW to 86 trillion KRW, an increase of 8.8 trillion KRW.

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