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POSCO Holdings Inc PKX Q2 2023 Earnings Call Transcript

So despite slow demand, attempts are made to bring up steel price. If Chinese steel makers reduce production in Q4, the market conditions might recover. Next, I’ll give you more details of performance by company. POSCO’s production and sales volume went up Q-o-Q. And in terms of crude steel production volume operation rate reached 87.3%, achieving normalization. Other production by product, CR production volume declined due to regular repair of the CR line.

  • Now in Q2, the steel market conditions hit bottom, but it bottomed up.
  • And after we kick start the launch of the surviving company, we have been working on the stock governance.
  • And at the same time, we may use our shares, but that’s the next step in the far future.
  • So there is a good knowhow accumulated to the FINEX, and we also have the knowhow of the electric arc furnace.
  • You have already added five stocks to your watchlist.
  • Also, I am glad to announce that significant progress has been made to secure nickel.

Now from POSCO Holdings, Mr. Kim Seung-Jun, Head of Finance team will give you the answer. Let me share with you the 2023 second quarter earnings. So in Q2, POSCO Holdings saw consolidated revenue of KRW 20.12 trillion, up 3.8% quarter on quarter with OP up by 88% at KRW 1.33 trillion. Cumulative investment for the first intelligent ecommerce personalization for retailers half of the year were KRW 3.7 trillion on a consolidated basis, and the quarter end net debt ratio was 13.3%. Before we begin today’s earnings call, I would like to extend my deepest gratitude to all of our investors on behalf of the company for your trust and support to POSCO Holdings as well as our operating companies.

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Now moving on to POSCO Future M. POSCO Future M keeps posting steady growth. In particular, with high end N86 share increasing, cathode revenue went up 10.2% Q-o-Q and 86 sales share reached 31% in Q2, which drove up average selling price by 22% Q-o-Q. However, anode sales for EVs dropped by 15% Q-o-Q. This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances.

  • This would include offences such as possessing CSAM, using children for the purposes of creating CSAM, or exposing children to pornography or CSAM.
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  • So from July, we see a rebound of the distribution prices from China as well as from Europe as well.
  • POSCO previously operated a joint venture with U.S.

And second, regarding the Argentinian lithium business, I would like to know about the latest updates on the margin as well as price structure. And you mentioned about the mid to long-term actually strategy. So what is the profit level that you’re looking at in the next two to three years? And there’s also the FX factor as well and we consider the FX factor as an important factor for the next semester as well.

Shapes and colors should be chosen carefully according to these guidelines to ensure that a consistent visual identity is established. Sections of the POCSO Act may be added by the police in the First Information Report (FIR) whenever a sexual offence is committed against a child. While special laws override the IPC, sections of both are often mentioned in the FIR. For instance, an FIR would book an accused under section 376 (rape) of the IPC as well as relevant sections of the POCSO Act. The special courts stipulated under the POCSO Act are also to be child friendly. Another hallmark of the POCSO Act was that it set up procedures to make the criminal justice system child-friendly and prevent re-traumatisation.

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And especially for lithium, the plan is to commercialize it by this year to deliver strong performance as an independent business. Also, I am glad to announce that significant progress has been made to secure nickel. On the 14th, POSCO JK Solid Solution, a joint venture with Jeong Kwan Co., Ltd., began using its solid electrolyte production technology on the first solid electrolyte production line. The process uses lithium in expanding the battery material business to the next generation of solid state batteries.

Now, you talked about EBITDA, for brine, of course it’s high. Because the lithium processing from the mine, it’s just one single process. So mining and brine, they go hand in hand, which is why EBITDA is high.

So we believe that there is a growing demand for EVs as we had planned. Second, we are expanding our production for green industries. As you may well know, POSCO currently produces in our Pohang mill 100,000 tons of high grade NO products annually for green vehicle motor cores. Now, as for the green infra businesses, revenue and OP all increased Q-o-Q by 9.6% and 16.5%, respectively. If you look at the green materials, the revenue increased by 2.7% Q-o-Q, but OP declined by 55%. Actually POSCO Future M turned around from their previous quarter’s lower profit with OP of KRW 52 billion, up 160% from the previous quarter.

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Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein. In 1997, Seoul announced that it was going to transform POSCO into a private company in line with the government’s new policy of privatizing state-owned enterprises. The government planned to retain a majority share of the stock; initial reports in the South Korean press in 1998 indicated that the sale of public shares was going slower than anticipated. However, the administration led by Kim Young Sam changed the initial policy direction of privatization of POSCO and decided not to sell government-owned stock to keep it as a government investment enterprise.

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4 Wall Street equities research analysts have issued “buy,” “hold,” and “sell” ratings for POSCO in the last twelve months. There are currently 2 sell ratings and 2 hold ratings for the stock. The consensus avatrade review among Wall Street equities research analysts is that investors should “reduce” PKX shares. View PKX analyst ratings or view top-rated stocks. Which stocks are likely to thrive in today’s challenging market?

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So at the time of completion, the production will gradually increase. And even though without the certification or licensing, we can actually sell these products with a little bit of a discount, but we actually consider about one year for all the production to be stabilized. So it will be by 2025 for when all of the things that we bitfinex review produce, that is 166,000 tons to be completely sold. And third is regarding the energy sources, especially in terms of renewables as well as offshore projects, what are their share in our overall revenue? And how much of these projects and businesses are ongoing? And what can we expect in terms of revenue from these businesses?

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POSCO Holdings in China’s CNGR owns 60% and 40% share, respectively. The plan is to produce 50,000 tons of high purity nickel under the JV, which will help us complete a nickel precursor cathode value chain by 2025, thereby ensuring supply chain stability. On the 23rd, at the groundbreaking ceremony in Salta Province, Argentina for the brine lithium plant based at Salar del Hombre Muerto (Salt Lake), located at an altitude of 4,000 meters. The POCSO Act also specifically lays down stringent punishment for exposing children to, or using them to create child sexual abuse material (CSAM, also referred to as child pornography) under sections 13, 14, and 15. Investing in companies with poor financial strength has a higher risk of permanent loss of capital.

The average annual revenue growth of POSCO Holdings is10%, ranking worse than 54.08% of 588 companies in the Steel industry. The 3-year average EBITDA growth is 4.9%, ranking worse than 69.28% of 511 companies in the Steel industry. In July 1994, POSCO created two subsidiary companies, POSTEEL and POSTRADE. POSTEEL is the domestic sales and service arm of the company, while POSTRADE handles international trading of POSCO products. Both subsidiaries commenced full operation in September 1994, with all international POSCO affiliates transferred to POSTRADE by the end of that year.

As the world’s top nickel producer, Indonesia will help the company secure price competitive nickel by smelting nickel locally. The construction of the two smelting plants is expected to be completed by 2025. So I would like to share with you the answer for lithium.

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