POSCO(US:PKX)2023-04-27 13:35Financial Performance - POSCO reported a revenue increase of 44% QoQ in Green Materials, contributing to a consolidated revenue of KRW 21,338 billion for Q1 2023[8]. - The operating profit margin improved by 5.8 percentage points to 10.6%, with operating profit reaching KRW 2,258 billion, up from KRW 1,199 billion in the previous quarter[33]. - The EBITDA for Q1 2023 was reported at KRW 1,915 billion, reflecting a significant recovery from the previous quarter's loss[33]. - The consolidated revenue for Q1 2023 was 19,381 KRW billion, with a net profit of 840 KRW billion, reflecting a significant recovery from a net loss of 737 KRW billion in Q4 2022[66]. Debt and Financial Structure - The net debt ratio decreased to 7.7%, reflecting a stronger financial structure with a cash balance increase to KRW 9.5 trillion[8]. - Current assets increased to KRW 50,929 billion in Q1 2023, up from KRW 47,650 billion in Q4 2022, reflecting a QoQ increase of KRW 2,366 billion[67]. - Cash and cash equivalents rose to KRW 19,584 billion in Q1 2023, compared to KRW 18,739 billion in Q4 2022, marking an increase of KRW 1,139 billion[67]. - Total assets reached KRW 98,627 billion in Q1 2023, up by KRW 4,205 billion from KRW 98,407 billion in Q4 2022[67]. - Total debt decreased to KRW 23,993 billion in Q1 2023 from KRW 24,306 billion in Q4 2022, a reduction of KRW 313 billion[67]. - Net debt improved to KRW 4,409 billion in Q1 2023, down from KRW 5,554 billion in Q4 2022, reflecting a decrease of KRW 1,145 billion[67]. - Net debt to equity ratio decreased to 7.7% in Q1 2023 from 9.5% in Q4 2022, indicating a 1.8 percentage point improvement[67]. - Non-current liabilities increased to KRW 17,888 billion in Q1 2023, up from KRW 16,961 billion in Q4 2022, an increase of KRW 927 billion[67]. Production and Sales - Steel production increased to 8,770 k tons, with a utilization rate of 87.4%, marking a 6.2 percentage point improvement QoQ[24]. - POSCO's overseas steel revenue showed a growth of 19% QoQ, reaching KRW 5,952 billion, driven by improved market conditions[9]. - PT. Krakatau POSCO reported a 1.5% increase in sales price QoQ and a 3.2% decrease in raw material price QoQ, with HR sales volume rising from 127k tons in Q4 2022 to 430k tons in Q1 2023[35]. - POSCO Maharashtra's sales volume increased from 346k tons in Q4 2022 to 363k tons in Q1 2023, with a 3.8% increase in sales price QoQ[35]. - Zhangjiagang STS experienced a valuation loss of $17.1 million in Q1 2023 due to high inventory levels and low-price competition, despite a production increase to 7.8 million tons YoY[36]. - PY VINA expanded domestic sales volume by 13.7% from 47.4k tons in Q4 2022 to 53.9k tons in Q1 2023, with a 1.05% increase in sales price QoQ[37]. Strategic Initiatives - The company plans to expand its silicon anode production capacity to 25,000 tons by 2030, with an initial investment of KRW 59 billion for a 450-ton facility[14]. - POSCO acquired a domestic startup, Teratechnos, to enhance its capabilities in silicon anode materials, supporting its strategic expansion in the battery materials market[15]. - The company aims for a 50% reduction in carbon emissions by 2040 as part of its Carbon Neutral Roadmap, with ongoing investments in innovative technologies[20]. Segment Performance - Revenue from the Global Business segment decreased to 7,020 KRW billion in Q1 2023, while Energy segment revenue was 1,286 KRW billion, down 295 KRW billion QoQ[41]. - POSCO International's revenue decreased by 811 KRW billion QoQ, while operating profit increased by 70 KRW billion, resulting in an operating profit margin of 3.4%[40]. - POSCO E&C's revenue decreased to 2,571 KRW billion in Q1 2023, with operating profit increasing by 33 KRW billion, resulting in an operating profit margin of 5.6%[45]. - Future M's revenue increased to 1,135 KRW billion in Q1 2023, with a significant rise in cathode materials revenue to 713 KRW billion, up 328 KRW billion QoQ[50]. Inventory and Assets - Inventories slightly decreased to KRW 16,079 billion in Q1 2023 from KRW 15,472 billion in Q4 2022, a decline of KRW 607 billion[67]. - Tangible assets decreased to KRW 29,709 billion in Q1 2023 from KRW 31,781 billion in Q4 2022, a reduction of KRW 2,072 billion[67]. - Shareholders' equity was reported at KRW 57,162 billion in Q1 2023, down from KRW 58,258 billion in Q4 2022, a decrease of KRW 1,096 billion[67].