Despite weak demand in key sectors like construction, sales rose due to strong product sales in the North American oil and gas market. However, a decline in the selling price of oil country tubular goods (OCTG) and delays in logistics and raw material procurement caused by geopolitical risks in the Middle East led to the drop in operating profit.
A representative from SeAH Steel Holdings stated, "The North American energy market is expected to maintain a solid trend due to ongoing demand for supply chain restructuring and inventory replenishment. We anticipate a gradual recovery in profitability from price increases starting in the second quarter."
The company also plans to continue expanding product sales by responding to new demands from Middle Eastern oil and gas and LNG projects, as well as data centers in the Americas and offshore wind projects.
On a standalone basis, SeAH Steel reported first-quarter sales of 415.8 billion won, a 17.8% increase from the same period last year, while operating profit decreased by 11.1% to 23.2 billion won. This growth was attributed to the recognition of sales from the Shin An Woo I offshore wind and Canadian natural gas pipeline projects, along with increased sales volumes driven by rising LNG demand in North America.
However, the imposition of steel tariffs in the United States and rising raw material costs have negatively impacted profitability. SeAH Steel noted, "The effects of the rising won-dollar exchange rate and a profitability-focused sales strategy have improved operating profit compared to the previous quarter."
Meanwhile, SeAH Besteel Holdings is working towards achieving carbon neutrality by 2050, having obtained verification for its carbon footprint assessment solution under the international standard 'ISO 14607.'
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.