Posco International (047050) Q3 2024 earnings summary

Executive summary

• Revenue and operating profit continued an upward trend in 3Q24, with operating profit margin reaching a record high.

• Achieved consolidated revenue of 24.4 trillion KRW for 2024 Q3, with trading accounting for 86.8% and energy 13.2% of sales.

• Operating profit reached 972.3 billion KRW, with net profit attributable to controlling interests at 605.7 billion KRW.

• Completed integration with POSCO Energy, strengthening the LNG value chain and expanding energy business.

Financial highlights

• Revenue for 2024 Q3 was 24.4 trillion KRW, down from 25.2 trillion KRW in Q3 2023.

• Operating profit for the period was 972.3 billion KRW, compared to 1,163.1 billion KRW in 2023.

• Net profit attributable to controlling interests was 605.7 billion KRW, down from 673.9 billion KRW year-over-year.

• Gross margin for the period was 2.2%, with basic EPS at 3,554 KRW.

• Cash and cash equivalents at period end were 954.0 billion KRW.

Outlook and guidance

• Focus on expanding the global LNG value chain and renewable energy projects.

• Continued growth in energy segment expected, driven by strong demand in Eastern Australia.

• Natural graphite demand for battery applications projected to grow at a CAGR of 8.38% after 2023.

• Dividend policy targets payout of 25% of controlling interest net income, with stable and predictable returns.