The following is a summary of the POSCO Holdings Inc. (PKX) Q3 2024 Earnings Call Transcript:
Financial Performance:
POSCO reported third quarter revenues of KRW18.321 trillion, remaining consistent with the second quarter.
Operating income for the same period was KRW743 billion.
EBITDA stood at KRW1.75 billion for the third quarter.
Steel operating profit marked KRW466 billion, declining from the previous quarter by KRW31 billion.
Operating profits were bolstered by the Infrastructure segment and POSCO International, despite challenges in the rechargeable battery materials business.
Business Progress:
POSCO has completed the construction of the POSCO Argentina Brine Lithium Phase 1 plant, commencing production.
Strategic alliance formed with JSW Group in India for an integrated steel mill and renewable energy sectors.
POSCO is actively pursuing market entry strategies in key regions including India and restructuring non-core and low-margin businesses.
Opportunities:
The strategic alliance with JSW for establishing an integrated steel mill in India positions POSCO to capitalize on one of the fastest-growing steel demand markets.
Expansions in lithium hydroxide production and renewable energy collaborations are poised to bolster POSCO's portfolio in sustainable and renewable sectors.
Risks:
Falling prices of lithium hydroxide and the intensive capital and operational expenditures due to new plant constructions add financial pressure and could potentially delay cost recovery.
Volatile steel demand and price fluctuations, particularly in the Chinese market, pose risks to profitability.
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