Q2 consolidated revenue at KRW 18.51 trillion, operating income at KRW 7.52 trillion…continuation of core strategies for growth in steel and secondary battery materials
Improvement in steel and infrastructure segments from the previous quarter, leading to an increase in Q2 investment despite a decrease in the net debt ratio
POSCO Holdings reported a consolidated revenue of KRW 18.51 trillion, an operating income of KRW 752 billion, and a net income of KRW 546 billion for the second quarter.
Revenue and operating income decreased by 8% and 43.3%, respectively, compared to the same period last year. However, revenue and operating income increased by 2.5% and 29% compared to the previous quarter. Notably, improvements in the steel and infrastructure sectors of the prior quarter enabled an increase in Q2 investment while lowering the net debt ratio.
Performance in the steel sector has gradually improved since Q4 last year. At POSCO, production and sales decreased due to refurbishments at the Pohang Steelworks, leading to a slight decrease in revenue compared to the previous quarter. However, operating income slightly increased due to rising selling prices and reduced raw material costs.
In the infrastructure sector, POSCO International reduced depreciation expenses and increased selling prices due to the re-certification of gas field reserves, leading to increased revenue and operating income compared to the previous quarter. POSCO E&C also saw slight revenue and operating income increases due to accelerated progress on significant projects.
In the secondary battery materials sector, POSCO Future M experienced declining revenue and operating income from the previous quarter due to falling cathode material prices and initial operating costs at the synthetic graphite anode material plant. However, this year, the company continued its profitable trajectory with increased sales volumes and yield improvements of high-value products like high-nickel cathodes (N86, N87, NCA).
Ki-seop Jeong, CSO of POSCO Holdings, stated, “While we are reviewing tactical changes such as investment timing adjustments in response to rapid changes in the external environment, our core strategy for growth in the steel and secondary battery material businesses remains steadfastly pursued.”
Additionally, POSCO Holdings introduced the progress of hydrogen reduction steelmaking technology development linked with national R&D demonstration projects as part of its Green Transformation (GX) efforts in the steel sector. It also shared the status and plans for producing secondary battery material resources, such as lithium and nickel. Furthermore, the company discussed the progress of natural gas production facility expansion plans, including the stable revenue-generating Myanmar offshore gas field and Senex Energy’s production tripling expansion development.
On July 12, POSCO Holdings hosted the ‘Secondary Battery Materials Business Value Day,’ announcing a strategy to utilize the chasm period as an opportunity to solidify the secondary battery materials business as the group’s second growth engine. The company also pledged a robust shareholder return policy, including the incineration of approximately KRW 2 trillion worth of its shares over the next three years and the immediate incineration of future share purchases.