Ecopro continued its profitable trend in the second quarter, driven by growth in its environmental business and improved profitability in its lithium operations due to a booming semiconductor market.
The company reported consolidated sales of 820.8 billion won and an operating profit of 32.9 billion won for the second quarter. While sales decreased by 11.9% compared to the same period last year, operating profit surged by 102.7%, indicating improved profitability. Compared to the previous quarter, sales increased by 0.3% from 818.3 billion won, but operating profit fell by 41.7% from 56.4 billion won.
Increased metal prices and rising exchange rates contributed to higher sales in the recycling sector and improved profitability in the lithium business. However, heavy rainfall in Indonesia temporarily reduced the operating rate of nickel smelters, leading to a slight decline in profitability. The company stated, "The recovery work at the smelters is nearing completion, and we expect performance to rebound in the second half of the year."
Looking at the performance by subsidiary, Ecopro BM, which produces cathode materials, recorded consolidated sales of 576.7 billion won and an operating profit of 18 billion won in the second quarter. Although sales and operating profit slightly decreased due to stagnation in the European electric vehicle market, demand from artificial intelligence (AI) data centers and power applications supported the results.
Ecopro Materials, responsible for precursor business, increased sales to external customers, achieving 178.8 billion won in the second quarter, up from 166.5 billion won in the previous quarter. However, it reported an operating loss of 10.6 billion won due to a temporary decline in the operating rate of the Green Eco Nickel (GEN) smelter in Indonesia caused by heavy rains. Nevertheless, the recent recovery in the GEN smelter's operating rate suggests that profitability may improve in the medium to long term.
Ecopro HN, which operates eco-friendly materials, reported second-quarter sales of 51.5 billion won and an operating profit of 5.8 billion won, with both figures rising compared to the previous quarter. The semiconductor market boom has led to increased order fulfillment, and stable supply to overseas liquefied natural gas (LNG) power plants is gradually expanding sales.
Additionally, the lithium business saw improved profitability as the rise in lithium prices was reflected in selling prices. The recycling business also continued its upward trend in sales due to the effects of rising metal prices and exchange rates. Ecopro plans to enhance its business portfolio by securing raw materials and expanding its recycling operations, focusing on developing next-generation batteries and semiconductor materials.
Following its nickel smelting operations in Indonesia, the company is advancing the BNSI smelter project to expand its core mineral supply chain and strengthen its lithium procurement base through the Nevada lithium project and North American supply chain collaboration.
Furthermore, Ecopro aims to expand its battery recycling and urban mining businesses while continuously developing next-generation battery materials such as cathodes for all-solid-state batteries, solid electrolytes, and lithium metal anodes, as well as semiconductor materials.
Ecopro is accelerating its future business expansion. The company is pursuing the development of next-generation battery materials, including cathodes for all-solid-state batteries, solid electrolytes, and lithium metal anodes, while also strengthening its semiconductor materials business centered around Ecopro HN.
Ecopro CEO Song Ho-jun stated, "Despite ongoing uncertainties in the business environment, we are proceeding with plans to strengthen supply chain competitiveness and invest in future growth businesses as scheduled. We will establish a sustainable growth foundation through stable operations of existing businesses and the creation of new business results."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.