Posco International (047050) Q2 2024 earnings summary

Executive summary

• Achieved stable profit in 2Q24 despite challenging market conditions, supported by a diversified business structure.

• Completed merger with POSCO Energy, integrating LNG value chain and expanding energy business scope.

• Maintains a global trading and energy portfolio with 46 subsidiaries and over 100 international networks.

• Focuses on steel, energy, and food/materials, with steel accounting for 71% of sales.

Financial highlights

• H1 2024 consolidated revenue was ₩16,042.8 billion, down from ₩17,177.5 billion in H1 2023.

• Operating profit for H1 2024 was ₩615.1 billion, down from ₩1,163.1 billion in FY 2023.

• Net income attributable to controlling interests was ₩366.8 billion in H1 2024.

• 2Q24 sales reached KRW 8,282 billion, up 6.6% year-over-year.

• Net income for 2Q24 was KRW 190 billion, a 14% increase year-over-year.

Outlook and guidance

• Ongoing expansion in upstream and midstream energy operations, including new gas field developments and LNG terminal capacity increases.

• Plans to strengthen the LNG and renewable energy value chain post-merger.

• Expanding hydrogen and CCUS (carbon capture, utilization, and storage) businesses to support carbon neutrality.

• Flexibility in EV motor core business to address weak EV demand, with local production and hybrid order expansion.