SeAH Steel Holdings Co., Ltd. Achieves Record Quarterly Operating Profit with Sales of 1 Trillion KRW and Operating Income of 173 Billion KRW

[Asia Economy Reporter Jeong Dong-hoon] SeAH Steel Holdings Co., Ltd. announced on the 14th that it achieved a record high quarterly operating profit with consolidated sales of 1.0043 trillion KRW and operating profit of 173 billion KRW in the third quarter.

Compared to the same period last year, sales increased by 38.8% and operating profit rose by 101.2%. The company analyzed, "Due to the boom in the North American Oil & Gas industry, local supply is insufficient compared to demand in the energy-oriented steel pipe market," adding, "Sales and operating profit increased significantly year-on-year due to increased sales and price rises of key products."

It further stated, "The increase in third-quarter profits was driven by SeAH Steel Holdings' stable global supply chain management expertise, strong negotiation power leading to price hikes, and expanded supply volume from the U.S. local production subsidiary (SSUSA)."

On a standalone basis, SeAH Steel's sales rose 22.8% and operating profit increased 37.5% compared to the same period last year. The rise in operating profit is attributed to proactive sales strategies such as price increases due to raw material cost hikes, and expanded profitability of high-margin products like energy-oriented steel pipes driven by exchange rate and international oil price increases.

SeAH Steel stated, "The energy industry's conditions are expected to see steady investment growth due to low inventory levels, increased uncertainty from export sanctions on Russia, and strengthened global energy security," adding, "As global energy supply remains limited, efforts are being made to maximize supply from all energy sources to meet massive demand." It further noted, "Following a surge in drilling activities this year, the upward trend is expected to continue next year, so global demand is projected to remain strong for a considerable period."

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