LX International Q1 Operating Profit Falls 6.8% to 108.9 Billion Won

LX International said in a regulatory filing Tuesday that its first-quarter operating profit on a consolidated basis totaled 108.9 billion won, down 6.8% from a year earlier. The company cited factors including a decline in the Shanghai Containerized Freight Index (SCFI). 

First-quarter revenue rose 4% from a year earlier to 4.2113 trillion won, helped by higher output and sales at key assets including the AKP nickel mine in Indonesia and palm plantations. 

Operating profit, however, jumped 96.2% from the previous quarter, nearly doubling as profitability rebounded. The company pointed to stronger resource-market conditions, supported by supply-control policies in major resource-producing countries including Indonesia and by the closure of the Strait of Hormuz. 

It said improved results in its resources and trading businesses led the companywide gain in profitability. With selling prices rising on stronger commodity markets, it expanded production and sales at major assets such as the AKP nickel mine and palm plantations. Sales volumes also increased for key trading items, including methanol, contributing to quarter-on-quarter improvement. 

In logistics, the company said it continued to generate steady profit, led by its contract logistics (CL) business that manages overall logistics operations for corporate clients. 

A company official said, "On the back of a recovery in global resource markets and improved profitability in the trading division, we saw a sharp improvement in profitability from the previous quarter," adding, "Even in an uncertain business environment marked by greater volatility in resource and logistics markets, we are focusing on improving operating efficiency at core assets and generating stable cash flow."

The official said the company will accelerate diversification and a shift in its business portfolio by investing in future-oriented minerals such as nickel, bauxite and copper; developing new markets and expanding new businesses; and entering new growth areas including energy infrastructure and power solutions, with a focus on producing visible results.