SeAH Steel Holdings Q2 Operating Profit 12.9 Billion KRW... 64.2% Decrease YoY

[Asia Economy Reporter Yoonju Hwang] SeAH Steel Holdings announced on the 14th that its consolidated operating profit for the second quarter of this year recorded 12.9 billion KRW, down 64.2% compared to the same period last year. During the same period, sales decreased by 17.2% to 550.2 billion KRW, and net profit shrank by 91.6% to 1.9 billion KRW.

A representative from SeAH Steel Holdings explained, "The continued COVID-19 situation and unstable oil prices directly impacted the sharp decline in domestic and overseas steel demand, leading to a drop in overseas subsidiaries' performance. Additionally, the deterioration of the manufacturing subsidiary (SSUAE) results due to project delays in the Middle East and lack of orders was also reflected."

On a separate basis, operating profit increased by 5.2% to 12.1 billion KRW. Sales and net profit decreased by 12.6% and 9.3%, respectively, to 270.6 billion KRW and 7.3 billion KRW. Although sales declined due to reduced export volumes and profitability deterioration caused by worsening steel market conditions in the Americas, profits increased through expanded sales of large-diameter steel pipes for offshore wind structures and global LNG project STS large-diameter steel pipes in regions other than the Americas.

SeAH Steel Holdings plans to review sales strategies for each subsidiary and continue improvement activities such as productivity enhancement to secure profitability even if the COVID-19 situation persists for some time.

Specifically, SeAH Steel will continue to pursue sales expansion strategies in the domestic market and regions other than the Americas. Along with energy products (OCTG, pipelines), it is also strengthening sales expansion strategies for large-diameter steel pipes for offshore wind structures and STS steel pipe products for global LNG projects.

For overseas subsidiaries, despite the slump in demand for energy steel pipes, they plan to expand sales through product mix in the North American market and strengthen sales organization restructuring, marketing, and promotional activities to increase domestic market share.