LX International Posts Q1 Operating Profit of 108.9 Billion Won, Up 96.2% from Previous Quarter

Revenue Up 4% Year-on-Year to 4.2113 Trillion Won

Strong Resource Market and Trading Recovery Drive Improved Results

Accelerating Business Portfolio Transformation with Focus on Tangible Results

LX International improved its profitability thanks to strong performances in both its resources and trading divisions.

On April 29, LX International announced in a regulatory filing that, on a consolidated basis, it posted revenue of 4.2113 trillion won and operating profit of 108.9 billion won for the first quarter.

Compared to the first quarter of last year, revenue increased by 4.0%, driven by higher production and sales volumes from major assets such as the AKP nickel mine and palm plantations in Indonesia. However, operating profit decreased by 6.8%, mainly due to a decline in sea freight rates (SCFI).

On the other hand, operating profit surged by 96.2% from the previous quarter, nearly doubling, signaling a marked recovery in profitability. This was positively influenced by supply control policies in key resource-rich countries such as Indonesia and stronger resource market conditions due to the closure of the Strait of Hormuz.

In particular, the recovery in the resources and trading divisions led to the overall improvement in company profitability.

The company aggressively expanded both production and sales volumes at key assets such as the AKP nickel mine and palm plantations in response to rising prices driven by strong resource market conditions. Sales volumes of major trading items, including methanol, also increased alongside market upswings, contributing to improved performance compared to the previous quarter.

The logistics division continued to generate solid profits, focusing on contract logistics (CL) services that comprehensively manage logistics operations for corporate clients.

A representative from LX International stated, "We saw a significant improvement in profitability compared to the previous quarter, supported by the recovery of global resource markets and improved profitability in the trading division. Despite an uncertain business environment amid increased volatility in the resources and logistics markets, we are focusing on optimizing core asset operations and stable cash generation."

The representative added, "We will accelerate the diversification and transformation of our business portfolio by investing in promising future minerals such as nickel, bauxite, and copper; discovering new markets and expanding new businesses; and entering new growth areas such as energy infrastructure and power solutions, with a focus on delivering tangible results."

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