Hyundai Steel reports net loss for 2020, expects demand to recover

Friday, 29 January 2021 15:47:26 (GMT+3)   |   Istanbul
       

South Korean steelmaker Hyundai Steel (Hyundai) has announced its financial results for the fourth quarter and the full year of 2020.

Accordingly, Hyundai Steel has posted a net loss of KRW 267 billion ($238.89 million) for the fourth quarter, compared to a net loss of KRW 45 billion in the third quarter and a net loss of KRW 74 billion in the fourth quarter of 2019. In 2020, the company reported a net loss of KRW 440 billion ($393.66 million), compared to a net profit of KRW 26 billion in 2019.

Meanwhile, in the fourth quarter, the company’s sales revenues increased by 7.2 percent quarter on quarter and fell by 0.8 percent year on year to KRW 4.78 trillion ($4.27 billion), while its operating profit totaled KRW 55 billion ($49.21 million), compared to an operating profit of KRW 33 billion in the third quarter and an operating loss of KRW 148 billion in the fourth quarter of the previous year. According to the company’s statement, its operating profit improved gradually by normalizing production and expanding sales as the global economy recovers.

In 2020, the company’s sales revenues decreased by 12.1 percent year on year to KRW 18.02 trillion ($16.14 billion), while its operating profit totaled KRW 73 billion ($65.36 million), compared to an operating profit of KRW 331 billion in 2019.

In 2020, the company’s finished steel production amounted to 19.07 million mt, decreasing by 10.1 percent year on year, while its steel sales volume totaled 19.68 million mt, down by 7.7 percent year on year. Production decreased as global demand shrank amid the coronavirus pandemic, while sales declined due to the slump in industrial demand, from sectors such as automotive and shipbuilding.  

According to the company, global steel demand is expected to recover due to the resumption of economies and production cuts in China amid carbon emission reductions. Hyundai Steel also expects construction investments will be ramped up by the South Korean government and that auto sales will increase as demand recovers. Regarding raw material and steel prices, the company said that iron ore prices would be stagnant due to the imbalance in supply and demand, while coal prices are foreseen to increase amid the rise in demand.


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