SeAH Steel Holdings Q3 Operating Profit 19.4 Billion KRW... Down 84.3% YoY

SeAH Steel Holdings announced on the 14th that it recorded consolidated sales of 860 billion KRW and an operating profit of 19.4 billion KRW for the third quarter of this year. Compared to the same period last year, sales decreased by 8.7%, and operating profit dropped by 84.3%.

Profitability declined due to a reduction in roll margins caused by falling prices of energy-grade pipes in the North American oil and gas market. Sales volume of energy-grade steel pipes remained at a similar level to the same period last year, supported by stable supply chains from domestic and overseas production subsidiaries.

SeAH Steel recorded standalone sales of 367.7 billion KRW and an operating profit of 11.1 billion KRW. Compared to the same period last year, sales decreased by 13.2%, and operating profit fell by 72.7%. Profitability declined due to the worsening steel market conditions caused by sluggish overall industries such as construction amid a slowdown in global economic growth and falling prices of energy-grade steel pipes in North America.

SeAH Steel Holdings expects that the inflow of low-priced steel products into the domestic market will decrease if the Chinese economy recovers following the announcement of large-scale economic stimulus measures in China. The upcoming Donald Trump administration's policy of easing energy regulations is expected to trigger an expansion of oil and gas projects, potentially increasing demand for energy-grade steel pipe products. Furthermore, with the anticipated strengthening of the U.S.'s protectionist trade policies, exports of steel pipes to the U.S. from countries subject to high tariffs are expected to become difficult, which may lead to a rebound in prices.

Demand for large-scale energy-related projects in the Middle East, natural gas (LNG), and offshore wind sectors is expanding, and sales and profit contributions from previously secured energy projects are expected to gradually increase.

Through active participation in low-carbon solution projects, the company is accelerating its efforts to target the carbon-neutral energy equipment market. The SeAH Wind factory, which produces offshore wind substructures, is scheduled to be completed by the end of this year, with commercial production set to begin in the first half of 2025.