POSCO International Reports Operating Profit of 474.5 Billion KRW Last Year, Down 21.6% YoY

Net Profit Increased by 13.4% Year-on-Year to 229.5 Billion KRW... "Enhancing Financial Structure Soundness"

[Asia Economy Reporter Ki-min Lee] POSCO International announced on the 28th that its provisional figures for last year showed sales of 21.4724 trillion KRW, operating profit of 474.5 billion KRW, and net profit of 229.5 billion KRW.

Sales and operating profit decreased by 12.1% and 21.6% respectively compared to the previous year, but net profit increased by 13.4% to 229.5 billion KRW.

POSCO International explained that it continued profit- and cash flow-focused management by proactively responding to global economic uncertainties, and that efforts to strengthen working capital management improved financial soundness and reduced the debt ratio, which showed results.

In the fourth quarter of last year, sales increased by 11% compared to the previous quarter to 5.6413 trillion KRW due to increased sales volume of grains such as corn and soybeans and expansion of steel raw material sales. Operating profit was 87.3 billion KRW, down from 107.1 billion KRW in the previous quarter, but the decline in operating profit was minimized through elimination of high-risk trading and improved profit margins by managing client companies.

Additionally, by reducing short-term trade finance borrowings and repaying debts, the debt ratio decreased by 30.5 percentage points compared to the previous year, reaching 163.5%, the lowest level in the industry.

POSCO International plans to expand its global market by utilizing the group’s integrated overseas network based on expectations of increased demand for steel products and recovery of raw material market conditions this year. In the grain trading business, where transaction volume has been continuously expanding, it plans to improve profitability through value chain expansion.

A POSCO International official said, "We will secure profits in the energy business sector based on stable operation of the Myanmar gas field and expansion of liquefied natural gas (LNG) trading volume," adding, "We will expand the trading business by strengthening the value chain and focus on eco-friendly businesses such as the group’s hydrogen business, drive motor core business, and electric vehicle parts business in line with global trends, making efforts to establish a foundation for new growth engines.”