On August 6, 2024, POSCO INTERNATIONAL, led by CEO Lee Kye-In, publicly announced its impressive business results for the second quarter of the year. The company reported sales of KRW 8.2823 trillion, reflecting a 6.7% increase from the previous quarter. Operating income surged to KRW 349.7 billion, marking a substantial 31.8% increase, and the operating profit margin reached a record 4.2%, up from 4.0% in the same period last year. This performance exceeded market expectations by 25%, showcasing the company's resilience in a challenging economic environment.
The energy sector emerged as a significant contributor to POSCO INTERNATIONAL’s success, generating operating income of KRW 199.6 billion. This boost was primarily driven by increased sales volume from overseas gas fields. Additionally, the power generation business demonstrated remarkable year-on-year improvements in power utilization, even during the off-season, further solidifying the company's standing in the energy market.
For the first half of 2024, POSCO INTERNATIONAL reported total sales of KRW 16.428 trillion and an operating profit of KRW 615.1 billion. This strong performance raised expectations for the company’s full-year operating profit to exceed KRW 1 trillion, similar to last year's results. The company’s financial health has also improved, with continued debt repayments leading to a reduction in total debt to KRW 5.8755 trillion and a net debt-to-equity ratio of 71%. This reflects a decrease of KRW 499.6 billion and 8.9% from the previous year.
Despite challenges in the raw materials market and limited growth in the electric vehicle sector, POSCO INTERNATIONAL's materials business achieved an operating profit of KRW 147.6 billion. The company has diversified its portfolio into eco-friendly mobility parts, palm oil, secondary battery materials, and high-performance steel materials, allowing it to maintain stable profits. The traction motor core business, while facing delays in deliveries due to sluggish EV demand, still reported sales of KRW 81.2 billion through global sales of 430,000 units.
Looking ahead, POSCO INTERNATIONAL aims to strengthen its foundation for future growth by balancing strategic and new business ventures, particularly in energy and materials. The company plans to expand its value chain by leveraging its unique exploration and production capabilities in deepwater natural gas fields. Its subsidiary, Senex Energy, is expected to accelerate its goal of tripling production by 2025, following environmental approvals from the Australian government.
In the terminal business, POSCO INTERNATIONAL is focused on increasing storage capacity, completing Gwangyang LNG Terminal 1, and constructing LNG Terminal 2. This expansion aims to establish a strong presence in the emerging markets of sea trials and bunkering. The traction motor core business is also set to enhance its market share by expanding its global production infrastructure, despite a contraction in EV demand.
