POSCO Holdings, Operating Profit Down 27%... Annual Dividend Confirmed at 10,000 Won

Impact of Steel Price Decline and Poor Performance in Eco-friendly Future Materials Sector

POSCO Holdings announced on the 31st that its consolidated operating profit for last year was 3.531 trillion KRW, a decrease of 27.2% compared to the previous year. Sales fell 9% to 77.127 trillion KRW, and net profit also dropped 48.2% to 1.846 trillion KRW.

The decline in steel prices due to worsening domestic and international market conditions and poor performance in the eco-friendly future materials sector had a significant impact.

In the steel sector, following the early restoration of the cold stream flood at the Pohang Steelworks, operational stabilization was quickly achieved, resulting in a slight increase in crude steel production and product sales. However, operating profit decreased due to the deterioration of the global steel market.

In the eco-friendly future materials sector, sales increased compared to the previous year due to global order expansion, but operating profit declined due to the slowdown in electric vehicle (EV) growth and the consequent continuous drop in international lithium prices. The eco-friendly infrastructure sector saw a decrease in sales from trading business compared to the previous year due to the economic downturn, but profitability was maintained through increased sales to major overseas eco-friendly projects.

Despite the economic downturn caused by intensified global geopolitical risks and the continuation of a high-interest rate environment, POSCO Group has continued preparations for the future.

In the steel sector, the application of blast furnace-based low-carbon bridge technology has been expanded, and plans for transitioning to HyREX (Hydrogen Reduction Steelmaking Technology) have been established. In the eco-friendly infrastructure sector, synergies were created through major group business realignments such as the merger of POSCO International and POSCO Energy.

In the eco-friendly future materials sector, the completion of the Gwangyang lithium hydroxide plant and recycling plant, construction of the Argentina brine phases 1 and 2, and the start of the Indonesian nickel joint venture accelerated the securing of lithium and nickel production capacity.

Meanwhile, POSCO Holdings confirmed an annual total dividend of 10,000 KRW per share for 2023, and decided the dividend record date for the year-end dividend of 2,500 KRW to be February 29, following the 'dividend confirmation first, then dividend record date' method.