South Korea: POSCO's production, sales increase q-o-q in Q1CY'23

South Korean steel giant, POSCO, released its Q1CY'23 results on 27 April'23. The company's quarterly crude steel production and steel sales increased q-o-q during the period under preview. Complete operational recovery post the floods led to improved production and sales volumes.

Operational Highlights:

1) Crude steel production increases 6% q-o-q: The company's crude steel production at 8.499 million tonnes (mnt) in Q1CY'23 increased by 6% as against 8.047 mnt a quarter ago. However, on y-o-y basis, production volumes dropped 3% against 8.770 mnt in Q1CY'22.

2) Sales rise 8% q-o-q: Company's sales rose 8% to 8.162 mnt in Q1CY'23 in comparison with 7.547 mnt in the previous quarter. On an annualised basis, sales dropped 3% from 8.454 mnt in Q1CY'22.

Financial results:

Revenue increases 11% q-o-q: The company's revenue from steel sales increased 11% to KRW 9,622 billion in Q1CY'23 from KRW 8,675 billion in the previous quarter. Comparing annually, the revenue declined 15% from KRW 11,272 billion in Q1CY'22.

• PT. Krakatau POSCO: The joint venture between Krakatau and POSCO, Korea reported a significant rise in revenues and operating profits. Operational profits of the company rose from $31 million in Q4CY'22 to $53 million in QCY'23. Operating profit increased on the quarter due to increased sales after the commissioning of the new hot-rolling (HR) line and an increase in the share of profits from domestic sales. For instance, hot-rolled (HR) steel sales which stood around 0.127 mnt in Q4CY'22 surged to 0.430 mnt in Q1CY'23, as per the quartery report.
  
  
• POSCO Maharashtra performance: POSCO's Maharastra-based unit recorded revenue at $335 million in Q1CY'23 against $310 million in Q4CY'22. Increased sales and price driven by the economic recovery in India, helped boost the revenues in the January-March period. Sales volume improved marginally to 0.363 mnt in Q1 against 0.346 mnt a quarter ago.
  
  
• POSCO International performance: POSCO International reported decline in steel revenues at KRW 8,306 billion, down 9% against KRW 9,117 billion in Q4CY'22. On y-o-y basis, too, revenues reported a decline of 23% against KRW 10,745 billion. The steel major mentioned that its revenue dropped due to decrease in steel sales volume.