SeAH Steel Holdings announced on August 13 that it recorded an operating loss of 50.8 billion won ($38 million) in the second quarter, despite revenue of 1.1669 trillion won ($885 million), which represents a 23.2% increase compared to the same period last year.
On a standalone basis, SeAH Steel reported revenue of 457.7 billion won ($344 million) and an operating profit of 32.6 billion won ($24 million), marking increases of 19.2% and 54.3%, respectively, from the previous year.
Despite global geopolitical risks causing logistical disruptions, the company benefited from increased sales of oil and gas pipes in North America and rising prices, contributing to the overall revenue growth.
However, the operating loss was attributed to initial depreciation costs and anticipated future expenses related to facilities established by SeAH Wind to respond to global offshore wind projects, which were accounted for as one-time provisions.
Looking ahead, the company expects improved performance in the second half of the year, driven by increased demand for oil and gas projects in the Americas and the Middle East, as well as the ramp-up of production for pre-ordered quantities in the UK offshore wind sector.
SeAH Steel stated, "While the demand for oil and LNG infrastructure investment in the Middle East remains positive, the prolonged geopolitical risks are causing delays in raw material procurement and shipping, which is slowing the pace of project orders. We plan to defend our profitability by focusing on urgent delivery projects amid rising raw material cost pressures."
Additionally, SeAH Steel is actively pursuing the eco-friendly decarbonization energy infrastructure market, having signed a contract to supply 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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