[Click eStock] "Posco Inter, Expected Benefits from Yeongilman Oil Field Development... Target Price Up"

Daishin Securities raised the target price for POSCO International from 68,000 KRW to 76,000 KRW on the 21st, stating that "there is a high possibility of participation if the gas field development in the Yeongilman area of Pohang, Gyeongbuk, becomes a reality." The buy rating was also maintained.

On the same day, Lee Taehwan, a researcher at Daishin Securities, analyzed, "We applied a multiple reflecting the government's Yeongilman oil and gas exploration plan."

Earlier, the government confirmed the possibility of oil and gas reserves exceeding 3.5 billion barrels in the Yeongilman area, and the decision to proceed with development is expected to be based on future confirmation of reserves and quantities.

The researcher explained, "POSCO International is the most proven domestic company in offshore upstream (the crude oil production sector in the petroleum industry) development," adding, "with past exploration and development history of Donghae 1 and 2 gas fields, it is a company that fully possesses experience in exploration, development, production, and sales of offshore gas fields beyond simple equity investments."

He also predicted, "On a consolidated basis for the second quarter of this year, sales are expected to decrease by 14.5% year-on-year to 7.6 trillion KRW, and operating profit is expected to decline by 22% to 278.5 billion KRW," adding, "Operating profit is expected to meet market expectations."

He added, "Global business performance may be somewhat sluggish due to the depressed steel market and the initial operation of the motor core plant No. 1 in Mexico, but profits are expected to increase compared to the previous quarter due to effects such as the normalization of production and sales at the Myanmar gas field in the energy sector."