POSCO Inter, Q1 Operating Profit 145.8 Billion KRW... 11.3% Decrease YoY

"Minimizing Operating Profit Decline through Risk Management and Gas Field Sales"

[Asia Economy Reporter Kim Ji-hee] POSCO International announced on the 23rd that it recorded sales of 5.511 trillion KRW and an operating profit of 145.8 billion KRW in the first quarter of this year. Compared to the same period last year, sales and operating profit decreased by 10.8% and 11.3%, respectively.

A POSCO International official stated, "Despite the global economic downturn caused by the COVID-19 pandemic and production cuts by major clients, we achieved solid performance. In particular, despite the decline in sales due to the economic downturn, we minimized the decrease in operating profit through proactive risk management and stable sales from the gas fields."

To prepare for the global economic downturn, POSCO International strengthened profit stability by reducing low-profit and long-term credit transactions and cleaning up non-performing clients. Additionally, despite a slight drop in sales prices due to the decline in oil prices, the Myanmar gas field sold an average of 570 million cubic feet per day in the first quarter based on stable partnerships with China and Myanmar.

A POSCO International official explained, "Even amid increasing global economic uncertainties such as COVID-19 and low oil prices, we are continuously striving to improve the trading business structure and profitability by strengthening profit and cash flow-centered management. Moving forward, we plan to sustain growth by proactively and flexibly responding to rapidly changing external environments while building a foundation for new growth engines through strengthening the value chains of core businesses such as steel, E&P, food, and LNG."