POSCO International , helped by increased output at an Australian gas field and growth in an Indonesian palm business, posted second-quarter results this year that beat the market.
POSCO International said on the 30th that it posted consolidation-based sales of 18.9632 trillion won and operating profit of 429 billion won in the second quarter this year. Compared with a year earlier, sales rose 18.2% and operating profit rose 36.8%. The operating margin increased by 0.6 percentage point from 3.9% to 4.5%.
Sales and operating profit beat the securities consensus compiled by FnGuide, 8.4281 trillion won and 351.7 billion won, by 14.2% and 22%, respectively. Compared with the previous quarter, sales rose 14.4% and operating profit rose 20%.
Operating profit in the energy institutional sector was 226.4 billion won, up 51.6% from a year earlier. Australia's Senex Energy saw the effect of higher output take hold, increasing gas sales volume by 33.8%. Sales were 134.1 billion won, up 49.4%, and operating profit was 33.2 billion won, up 235%.
The Myanmar gas field posted sales volume similar to a year earlier, but sales and operating profit each rose 4.8% and 6% on the back of a stronger exchange rate. Despite lower utilization, the power generation business increased operating profit by 37.5 billion won, up 118%, by adjusting plant operations in line with reduced baseload generation such as coal and nuclear. The LNG terminal also increased operating profit by 13% thanks to contract renewals and maintenance efficiencies.
In the materials institutional sector, growth in the Indonesian palm business stood out. The palm business posted sales of 234.1 billion won, up 145.6%, and operating profit of 76.8 billion won, up 91.5%. Results from PT.PAR, acquired in Nov. last year, were newly reflected, alongside a recovery in palm fruit output and higher palm oil prices.
With expanded supply of coal for power generation and higher sales of high-margin secondary battery materials, operating profit in the materials and bio business more than doubled to 30.3 billion won. The drive motor core business reduced losses in the production process, increasing operating profit by 47.3%. By contrast, operating profit in the steel business fell 37.9% to 52.6 billion won as a stronger dollar versus the euro reduced exchange rate–related transaction gains.
Net profit in the second quarter was 247.3 billion won, up 173.3% from a year earlier. This was due to non-operating losses narrowing from 187.2 billion won in the second quarter last year to 89.2 billion won in the second quarter this year.
Cumulative sales in the first half were 18.0336 trillion won, up 10.9% from a year earlier. Cumulative operating profit rose 28.2% to 786.5 billion won, and net profit rose 78.3% to 524.6 billion won.