STX Co., Ltd. Reports Q3 Consolidated Operating Profit of 6.23 Billion KRW, Three Consecutive Quarters of Operating Profit and Continued Performance Improvement

- STX Co., Ltd. Announces Q3 Earnings: Consolidated Operating Profit of 6.2 Billion KRW, Separate Operating Profit of 4.8 Billion KRW
- Maintains Profitability for Three Consecutive Quarters, Continuous Operating Performance Growth Since Q1 Turnaround

Global specialized trading company STX Co., Ltd. achieved an operating profit of 6.2 billion KRW on a consolidated basis and 4.8 billion KRW on a separate basis in the third quarter, marking three consecutive quarters of operating profit surplus. After turning to a profit with a consolidated operating profit of 300 million KRW in the first quarter, continuous improvement in operating performance has been maintained with 4.1 billion KRW in the first half and 6.2 billion KRW in the third quarter. Net loss also improved significantly, recording a loss of 800 million KRW compared to a loss of 16.7 billion KRW in the same period last year, showing substantial improvement in non-operating income as well.

Despite COVID-19, the continuous improvement in operating performance is very encouraging. STX Co., Ltd. holds a 1.47% stake in the Ambatovy nickel mine, one of the world's three largest nickel mines, and is engaged in nickel trading operations. The nickel LME price started the year at $14,000, dropped to $10,000 in March when COVID-19 began to spread, and recently surged to $16,000. Since nickel is an essential material for manufacturing secondary batteries, nickel prices have soared, highlighting its value as a strategic mineral.

Meanwhile, recently STX Co., Ltd. formed the STX consortium together with its 100% subsidiary STX Marine Service and major shareholder APC, and signed a stock purchase agreement for Heung-A Shipping in October. The sale process is expected to be completed by the end of December. With the shipping market showing favorable conditions led by HMM, it is anticipated that the management normalization of Heung-A Shipping after acquisition will improve performance through equity-method gains and enhance the financial structure.

In this regard, a representative of STX Co., Ltd. stated, “STX Co., Ltd. experienced a leap to become one of the top 10 groups through the acquisition of Pan Ocean in the past. We believe that the acquisition of Heung-A Shipping will be a signal to recreate past glory, and we are accelerating the completion of the acquisition.”