POSCO International Q1 Operating Profit Up 29% Year-on-Year

by Oh Kuemin

Published 27 Apr.2023 10:29(KST)

Sales of 8.3066 trillion KRW · Operating Profit of 279.6 billion KRW

POSCO International recorded an operating profit of 279.6 billion KRW in the first quarter of this year, a 29% increase compared to the same period last year.

The company announced on the 27th through a public disclosure that it achieved sales of 8.3066 trillion KRW and a net profit of 191.3 billion KRW. Sales decreased by approximately 16% compared to the same period last year, while net profit increased by 17%.

This performance is the first announced by the integrated corporation following the merger with POSCO Energy. It exceeded securities firms' operating profit forecasts by 12%.

[Photo by POSCO International]

In terms of business segment performance, the energy sector showed remarkable results. Sales reached 1.187 trillion KRW, with an operating profit of 105.1 billion KRW. Despite factors reducing profitability such as a slight decrease in overseas gas field profits due to exchange rate declines, the company explained that the expanded power generation volume contributed to the positive results.

In the global business division, despite the economic downturn, sales of both steel and food products expanded, recording sales of 5.9408 trillion KRW and an operating profit of 86.1 billion KRW.

[Photo by POSCO International]

Additionally, in the steel business, the normalization of the Pohang Steelworks and the recovery of steel raw material supply contributed to the performance. The food business also showed strong results due to continued increases in sales of Brazilian soybeans to China and palm oil sales in Indonesia. The eco-friendly business contributed to profitability expansion through increased sales of parts for eco-friendly vehicles.

The overseas trading corporation and domestic and international investment corporations recorded sales of 1.1788 trillion KRW and an operating profit of 88.4 billion KRW.

A POSCO International official stated, “Thanks to company-wide efforts, we were able to maintain solid first-quarter results,” and added, “We will steadily build footholds in each business to evolve into a global eco-friendly comprehensive business company.”