LG Energy Solution Q1 Operating Profit 633.2 Billion KRW... Up 144.6% YoY

LG Energy Solution announced on the 7th that its consolidated operating profit for the first quarter of this year was tentatively estimated at 633.2 billion KRW, an increase of 144.6% compared to the same period last year.

During the same period, sales reached 8.7471 trillion KRW, up 101.4%. Compared to the previous quarter, sales increased by 2.5%, and operating profit rose by 166.7%.

This strong performance is analyzed to be influenced by the IRA (Inflation Reduction Act) policy. With the implementation of the U.S. IRA Advanced Manufacturing Production Tax Credit (AMPC) system starting January 1, LG Energy Solution included the expected related tax credit amount in its profit and loss from the first quarter.

Under the IRA Advanced Manufacturing Production Tax Credit, from 2023, battery cells and modules produced and sold in the U.S. can receive a certain amount of tax credit (35 USD/kWh for cells, 10 USD/kWh for modules).

Of LG Energy Solution’s operating profit of 633.2 billion KRW in the first quarter of this year, the expected tax credit amount is approximately 100.3 billion KRW. Excluding the tax credit, operating profit was tentatively estimated at 532.9 billion KRW, an increase of 105.8% compared to the same period last year.

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