Growth in the company's sales revenue and operating profit was mainly driven by the strong performance of its energy segment and continued expansion in its Materials & Bio Resources business.
According to the company's second quarter financial results, sales revenue increased by %18.2 year on year to KRW 9.623 trillion. Operating profit increased by %36.8 to KRW 429 billion, while the operating profit margin stood at %4.5. During the same period, profit before tax increased by %168.6 to KRW 340 billion, while net profit increased by %173.3 to KRW 247 billion.
The company's EBITDA increased by %29.8 year on year to KRW 583 billion. Net debt stood at KRW 7.03 trillion, while the net debt to equity ratio was %72.5.
Energy segment continues strong growth
The energy business made the largest contribution to the company's financial performance during the second quarter. Operating profit in the energy segment increased by %51.6 year on year to KRW 226 billion.
POSCO International stated that construction progress on Phase 4 of the Myanmar gas field development reached %44 as of the second quarter. Drilling operations at four production wells are continuing, with completion scheduled for the second half of the year.
The company also commissioned new production wells at Senex Energy in Australia, increasing its natural gas production capacity, and said it is evaluating new upstream asset acquisitions in North America and Southeast Asia to strengthen its LNG supply portfolio.
As part of its LNG infrastructure investments, construction progress on the second phase of the Gwangyang LNG Terminal reached %96. The company aims to complete the terminal by the end of 2026 and stated that the first LNG cargo under its long term agreement with Cheniere is expected to be delivered later this year.
Strong growth in the Materials & Bio Resources business
Within the Steel business, sales revenue increased by %6.3 year on year to KRW 3.911 trillion, while operating profit decreased by %37.9 to KRW 53 billion due to foreign exchange movements. The company stated that the appreciation of the US dollar against the euro was the main factor behind the decline.
In contrast, sales revenue in the Materials & Bio Resources business increased by %37.3 to KRW 2.906 trillion, while operating profit surged by %107.5 to KRW 30 billion. POSCO International stated that the strong performance was supported by the acquisition of a new palm plantation in Indonesia, higher crude palm oil (CPO) prices, and increased thermal coal sales volumes.
In the electric vehicle (EV) motor core business, sales totaled KRW 90 billion, while operating profit increased by %47.3 to KRW 10 billion. The company stated that improved production efficiency and lower costs supported profitability.
Meanwhile, POSCO International announced that it signed a memorandum of understanding with Mongolia's Ministry of Energy in June to expand cooperation in the energy sector, particularly in renewable energy and district heating projects. The company also stated that it continues to work on increasing its LNG trading volume in line with demand from the POSCO Group.
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