SeAH Steel Holdings Reports Q3 Operating Profit of 39.8 Billion Won, Up 105% Year-on-Year

Expansion of High Value-Added Project Orders Overseas, Including the Middle East

On November 14, SeAH Steel Holdings announced its consolidated results for the third quarter of this year, reporting sales of 923.122 billion won and operating profit of 39.787 billion won. Compared to the same period last year, sales increased by 7.3% and operating profit surged by 105.2%.

Large-diameter stainless steel welded pipes produced at SeAH Steel's Suncheon plant. The Asia Business Daily DB

A representative from SeAH Steel Holdings stated, "Despite the deterioration of global steel market conditions and the intensification of global protectionism, the U.S. local subsidiaries (SSA, SSUSA) maintained a stable level of sales for oil and gas energy pipes compared to the same period last year." The company added, "Strong performance was achieved year-on-year, driven by expanded supply for Middle Eastern projects by overseas subsidiaries (Inox Tech, SSUAE), as well as stable global distribution and supply chain strategies by production subsidiaries in the United States, Vietnam, and the Middle East."

In contrast, profitability in the domestic segment declined due to the prolonged slump in the domestic construction market and sluggish exports resulting from increased tariffs on exports to the United States.

On a separate basis, SeAH Steel reported sales of 301.783 billion won and an operating loss of 5.398 billion won, turning to a loss compared to the same period last year. Sales declined by 17.9% year-on-year.

A representative from SeAH Steel explained, "The company turned to a loss due to shrinking demand caused by the prolonged downturn in downstream industries such as construction and the seasonal off-peak period, rising raw material prices, and decreased profitability of export products due to the increased burden of U.S. steel tariffs." The company added, "We expect performance to improve in the fourth quarter as we enter the traditional peak season for the oil and gas market, pursue product differentiation, and expand sales of high value-added steel pipes for eco-friendly energy applications such as liquefied natural gas (LNG), offshore wind power, carbon capture, utilization and storage (CCUS), and hydrogen."

A SeAH Steel Holdings official stated, "In response to the spread of global protectionism and strengthened export tariffs to the United States, we will increase the production and sales ratio of our U.S. local subsidiaries and secure price competitiveness and a stable profit base in the U.S. oil and gas market." The official continued, "We will proactively respond to the potential contraction in demand for oil and gas energy pipes due to downward pressure on international oil prices, and, amid the global steel market slowdown, strengthen our export competitiveness by focusing on the supply of high value-added products for projects in regions such as the Middle East."

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