SeAH Steel Holdings announced on August 13 that it recorded sales of 1.1669 trillion won and an operating loss of 50.8 billion won for the second quarter. While sales increased by 14.3% compared to the same period last year, the company shifted to an operating loss.
On a standalone basis, SeAH Steel reported sales of 457.7 billion won and an operating profit of 32.6 billion won, marking increases of 19.2% and 54.3%, respectively, from the previous year.
Despite logistical disruptions due to global geopolitical risks, the company saw an increase in sales of oil and gas steel pipes in North America and a rise in prices, contributing to higher consolidated sales compared to the previous year.
However, the operating loss was attributed to the initial depreciation costs of facilities established by SeAH Wind to respond to global offshore wind projects, as well as anticipated future costs, which were accounted for as one-time provisions.
Looking ahead to the second half of the year, demand for oil and gas projects in the Americas and the Middle East is expected to expand, and production of pre-ordered quantities for offshore wind projects in the UK is set to begin, which should improve performance.
SeAH Steel stated, "While the demand for oil and LNG infrastructure investment in the Middle East remains positive, the pace of project orders is somewhat slowing due to prolonged geopolitical risks affecting raw material procurement and shipping delays. We plan to defend our profitability by focusing on urgent delivery projects amid rising raw material price pressures."
Additionally, SeAH Steel is actively pursuing the eco-friendly decarbonization energy infrastructure market, having signed a supply contract for high-value-added steel pipes for a CCUS project led by the UK government in June.
* This article has been translated by AI.
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