POSCO(US:PKX)2025-04-30 00:17Revenue Performance - The Steel Segment generated revenue of W 44,547 billion in 2022, which decreased to W 40,393 billion in 2023, and is projected to further decline to W 39,104 billion in 2024, maintaining a percentage of 52.4% of total revenue for both 2022 and 2023, and increasing to 53.2% in 2024[127]. - The Trading Segment of the Infrastructure Business reported revenue of W 29,518 billion in 2022, which fell to W 24,034 billion in 2023, and is expected to decrease slightly to W 22,804 billion in 2024, accounting for 34.7% of total revenue in 2022, 31.2% in 2023, and 31.0% in 2024[127]. - The Secondary Battery Materials Segment's revenue increased from W 2,452 billion in 2022 to W 3,816 billion in 2023, and is projected to decrease to W 2,813 billion in 2024, representing 2.9% of total revenue in 2022, 5.0% in 2023, and 3.8% in 2024[127]. - Revenue decreased by 4.7%, or W 3,597 billion, from W 77,057 billion in 2023 to W 73,459 billion in 2024, primarily due to declines in external revenues across multiple segments[277]. - Total revenue from the Trading Segment of the Infrastructure Business decreased by 0.1%, or W 40 billion, from W 42,944 billion in 2023 to W 42,903 billion in 2024[280]. - Total revenue from the Secondary Battery Materials Segment decreased by 20.6%, or Won 992 billion, from Won 4,822 billion in 2023 to Won 3,830 billion in 2024[287]. Production and Capacity - The company produced approximately 39.2 million tons of crude steel and stainless steel in 2024, with an annual production capacity of 45.1 million tons[137]. - The actual crude steel output for PT. Krakatau POSCO in 2023 was 3.01 million tons, maintaining a capacity utilization rate of 100.5%[238]. - The capacity utilization rate for Pohang Works was 87.7% in 2023, while Gwangyang Works had a rate of 86.6%[236]. - The actual crude steel and stainless steel output increased from 38.6 million tons in 2022 to 39.9 million tons in 2023, with a slight decrease to 39.2 million tons projected for 2024[261]. - The capacity utilization rate improved from 85.2% in 2022 to 88.1% in 2023, with a projected decrease to 87.1% in 2024[261]. Market Share and Sales - Domestic sales of the Steel Segment accounted for 37.2% of total revenue in 2024, down from 39.6% in 2023, while export sales accounted for 62.8% in 2024, up from 60.4% in 2023[139]. - POSCO's domestic market share for stainless steel products was approximately 49% in 2024[151]. - Deliveries of plates reached 4,694 thousand tons in 2024, accounting for 16.1% of total sales volume, with a domestic market share of approximately 43%[153]. - Deliveries of wire rods totaled 1,527 thousand tons in 2024, representing 5.2% of total sales volume, with a domestic market share of approximately 51%[155]. - POSCO held a domestic market share of approximately 52% in hot rolled products, 56% in cold rolled products, and 49% in stainless steel products in 2024[186]. Financial Performance - Operating profit under K-IFRS decreased by 38.4% from W 3,531 billion in 2023 to W 2,174 billion in 2024[270]. - Profit attributable to owners of the controlling company decreased by 33.7%, from W 1,698 billion in 2023 to W 1,125 billion in 2024[272]. - Gross profit decreased by 14.5%, or W 929 billion, from W 6,417 billion in 2023 to W 5,488 billion in 2024[272]. - The company's profit decreased by 45.6%, or Won 841 billion, from Won 1,846 billion in 2023 to Won 1,005 billion in 2024, with a profit margin decline from 2.4% to 1.4%[320]. - The effective tax rate decreased from 30.0% in 2023 to 24.2% in 2024, with income tax expense dropping by 59.3%, or Won 468 billion, from Won 789 billion to Won 321 billion[318]. Cost and Pricing - The cost of sales as a percentage of revenue increased from 91.0% in 2022 to 91.7% in 2023, with a projected increase to 92.5% in 2024[259]. - The weighted average unit price for the company's principal steel products decreased by 11.3% from 2022 to 2023, primarily due to continued weakness in global economic conditions[251]. - The unit sales price of plates decreased by 13.7% in 2023 compared to 2022, accounting for 16.2% of total sales volume of principal steel products[252]. - In 2024, the weighted average unit price for principal steel products is projected to decrease by 4.3% from 2023, with the average exchange rate depreciating from Won 1,305.4 to US$1.00 in 2023 to Won 1,364.0 to US$1.00 in 2024[254]. - The unit sales price of stainless steel products decreased by 13.4% in 2023 compared to 2022, accounting for 8.5% of total sales volume of principal steel products[252]. Strategic Initiatives - The company aims for a 30% reduction in carbon emissions by 2035, 50% by 2040, and net zero emissions by 2050 as part of its 2050 Carbon Neutrality Roadmap[130]. - POSCO Energy merged into POSCO International on January 1, 2023, impacting the revenue reporting of the Trading Segment[125]. - The company is actively exploring diversification opportunities in promising business areas through POSCO HOLDINGS INC.[129]. - The company intends to expand its operations in renewable energy businesses, including solar and wind energy[200]. - The company plans to continue optimizing its fleet of dedicated vessels and upgrading existing vessels with energy-saving technologies[178]. External Factors - The average market price of iron ore was US$109 per dry metric ton in 2024, while the average market price of coal was US$240 per wet metric ton[176]. - In 2024, POSCO imported approximately 49 million dry metric tons of iron ore and 26 million wet metric tons of coal[173]. - Approximately 30% of iron ore imports and 24% of coal imports were sourced from foreign mines in which POSCO has investments[175]. - The average market price of nickel per ton on the London Metal Exchange was US$25,605 in 2022, US$21,474 in 2023, and is projected to be US$16,812 in 2024[177]. - The largest export market in 2024 was Asia (excluding China and Japan), accounting for 23.2% of export revenue, while exports to China accounted for 20.7%[165][166].