POSCO Holdings (PKX) Q1 2022 Earnings Call Transcript

For the period ending March 31, 2022

April 25, 2022 1:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, we will now begin the Earnings Call for POSCO Holdings for the First Quarter of 2022. For today's conference call, you will begin with a presentation from the company side, followed by a Q&A session with the participant's presence. [Operator Instructions] We will now listen to the earnings presentation by POSCO Holdings.

Chon Jung-Son

Hello, everyone. I am Chon Jung-Son, Head of Corporate Strategy team at POSCO Holdings. So today actually marks the first earnings release after we transitioned to a holding company. We look forward to your continued support and interest to POSCO Holdings.

As you may well know, this year on March 2, POSCO Group transitioned to a holding company structure centered on POSCO Holdings. So following this transition from today's earnings call to fully explain about our major businesses considered as [indiscernible] company such as the green - future green materials and green energy. We have the key management who are joining us today from POSCO Holdings. Not only that, we also have management from major operating companies from the five major operating companies joining us today.

So, going forward, we at POSCO Holdings, as we've promised to our investors will continue to do our best in achieving a balanced growth in steel and new growth businesses to enhance our enterprise value. Before our Head of Finance team gives you a detailed presentation, let me share a few words on the overall performance of the 2022 first quarter.

As for our steel business, despite increased pressure of to mitigate [ph] price hike, including coal due to Ukraine, Russia crisis, thanks to the rebound of the global steel prices, we achieved a strong performance of operating profit margin hovering 10%.

As for the green infrastructure and green future materials, POSCO Energy, POSCO International and other major operating subsidiaries saw a greatly improved profit level, thus making our operating profit to exceed KRW 200 billion Q-o-Q on a consolidated basis.

As for our lithium business, one of our seven core businesses, we broke ground on the Phase I production facility of 25,000 ton capacity at Hombre Muerto salt-lake in Argentina, and our Gwangyang [ph] lithium hydroxide production entity transitioned to a joint venture with Pilbara of Australia to stably secure lithium concentrate, which is a raw material for lithium production, thereby accelerating production capacity expansion.