Posco’s trading arm sees $100M profit in first quarter

Posco International reported more than $100 million in operating profit in the first quarter on $5 billion in sales.

Posco International, a trading arm of steel manufacturer Posco, on Thursday announced in a preliminary report a first quarter operating profit of 145.8 billion won ($130 million), up 49.2 percent compared to the previous quarter, but down 11.3 percent on year.

Sales declined 10.8 percent on year to 5.51 trillion won.

Net profit was 64.3 billion won, down 6.6 percent on year.

Posco International said pre-emptive handling of management risks and stable sales of gas pipelines helped its first quarter performance, despite the problems in the global economy as a result of the coronavirus.

The company said stable gas production from Myanmar also helped. It produced 570 million cubic feet in the first quarter.

The company also reduced long-term loans and restructured businesses that weren’t doing well. “We are constantly trying to raise our profitability by strengthening management of cash flow and profits,” said a spokesperson.

BY JIN MIN-JI [jin.minji@joongang.co.kr]