Posco International (047050) Q4 2024 earnings summary

Executive summary

• Achieved KRW 32.34 trillion in sales and KRW 1.12 trillion in operating profit for 2024, with a 2.4% decrease in sales and a 4% decrease in operating profit YoY.

• Net income declined to KRW 503.4 billion from KRW 680.3 billion YoY.

• Maintained stable profitability in energy through value chain expansion, despite global economic downturn and geopolitical instability impacting materials and steel.

• Invested KRW 1.1 trillion in 2024 to lay groundwork for future growth, focusing on LNG, power generation, and materials expansion.

• Outlined 2025 strategy to leverage LNG value chain, expand global mobility and agri-bio businesses, and restructure non-core assets.

Financial highlights

• Sales: KRW 32.34 trillion in 2024, down KRW 792 billion YoY.

• Operating profit: KRW 1.12 trillion, down KRW 46.2 billion YoY, mainly due to materials business weakness.

• Net income: KRW 503.4 billion, down KRW 176.9 billion YoY.

• EBITDA: KRW 1.64 trillion, slightly down from previous year.

• Net debt ratio improved to 65.8% from 70.2% YoY.

Outlook and guidance

• 2025 sales volume targets: gas production 215 Bcf (+9%), steel 12.5MMT (+5%), CPO 220KMT (+16%), EV motor core 2.5M units (+35%).

• 2025 CapEx planned at KRW 1.3 trillion, with 60-65% for growth investments and 20% for debt repayment.

• Shareholder return ratio to be maintained at 50%, including dividends and treasury share actions, with interim dividends planned.

• Strategic focus on expanding upstream reserves, new LNG infrastructure, and biofuel business.

• Targeting ROIC above WACC 8% and pre-tax profit growth of 8% annually.