SeAH Steel Holdings Posts 3.76 Trillion Won in Sales... North American Pipe Demand Supports Performance

Recovery in US Energy Steel Pipe Prices
Expectation of Increased Demand for Piping Materials
Driven by Data Center and Power Grid Expansion

SeAH Steel Holdings maintained stable sales last year, but its profitability declined slightly due to the sluggish domestic steel market.

SeAH Steel Holdings reported consolidated sales of 3.7596 trillion won and operating profit of 205.8 billion won. While sales increased by 2.3% compared to the previous year, operating profit decreased by 2.7%.

The company explained that it achieved stable sales through a recovery in the price of energy steel pipes in the United States and flexible inventory management by its US subsidiary. In particular, revenue recognition from overseas projects and the performance of its North American business helped offset a certain portion of the weak domestic business and supported overall results.

In contrast, SeAH Steel, which handles domestic operations, recorded standalone sales of 1.3721 trillion won and operating profit of 51.9 billion won, representing decreases of 23.2% and 74.3%, respectively, from the previous year. The prolonged downturn in the construction market led to a contraction in steel demand, and the spread of protectionist measures, such as US tariffs, placed additional pressure on sales volume and profitability.

SeAH Steel Holdings stated that it is improving productivity through the optimization of production facilities at its US oil country tubular goods (OCTG) manufacturing subsidiary, SSUSA, and maintaining stable performance through the execution of overseas projects. Revenue recognition from the United Arab Emirates' West to East Pipeline project also contributed to supporting the company's results.

The company projects that demand for OCTG and pipeline steel pipes in North America will remain stable going forward. In particular, the expansion of data center construction and rising power demand are expected to drive increased demand for medium and large-sized (16 to 24 inches and above) piping materials as infrastructure is expanded.

SeAH Steel Holdings plans to leverage its domestic and overseas production bases to respond to this demand, expand the supply of high value-added products, and thereby maintain stable performance.

Additionally, SeAH Wind, which manufactures offshore wind power substructures, is preparing for the full-scale shipment of commercial production volumes within the year. In addition to existing orders, the company plans to pursue additional large-scale project contracts. SeAH Steel Holdings aims to strengthen its position in the global offshore wind power equipment supply chain through collaboration with its production subsidiaries in the US and Europe.

In the Middle East, the company plans to continue generating results by stably supplying products to the Dorra gas field project and successfully executing the Canada gas field project. Furthermore, it intends to expand high value-added products such as CRA clad (corrosion-resistant alloy) pipes and enhance its global sales and manufacturing network to strengthen its competitiveness in the era of energy transition.