POSCO’s net profit increase 4.8 percent in 2019

Friday, 31 January 2020 12:14:06 (GMT+3)   |   Istanbul
       

South Korean steelmaker Pohang Iron and Steel Co. (POSCO) has announced its consolidated financial results for 2019, reporting a net profit of KRW 1.98 trillion ($1.66 billion), up 4.8 percent compared to 2018.

In 2019, POSCO's sales revenues decreased by 0.9 percent year on year to KRW 64.37 trillion ($54 billion), while its operating profit amounted to KRW 3.87 trillion ($3.25 billion), falling by 30.2 percent compared to 2018 due to softer steel earnings. POSCO expects its consolidated sales revenue to be at KRW 63.8 trillion this year. 

In the given period, POSCO produced 38 million mt of crude steel, while its finished steel sales were recorded at almost 36 million mt, both remaining stable as compared to previous year. The company expected 36,7 million mt of crude steel production for the current year.

According to POSCO, global steel demand growth will slow down this year amid low economic growth rate and ongoing trade wards. While Chinese demand is foreseen to grow around 1 percent due to the weakness in manufacturing sector and limited room for economic boost. While steel demand is expected to increase by only 0.6 percent in the US and Europe; in India, ASEAN and Russia, it is likely to be supported by the governments and expanded infrastructure projects.

As for the raw materials, POSCO expects iron ore prices to be in the range of $90-95/mt for the first quarter of this year depending on steel demand and inventory levels at Chinese ports, due to the expected restocking ahead of the rainy season in Australia and Brazil.


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