SeAH Steel Holdings Posts KRW 1.221 Trillion in Q3 Revenue, Highest Since Split-Off

Operating profit of KRW 93.3 billion, up 134% year on year
Strong sales of pipes for North American energy and data center markets
SeAH Wind's losses narrowed, returning to profitability quarter on quarter

SeAH Steel Holdings posted its highest quarterly revenue since its 2018 split-off as a holding company, buoyed by strong sales of energy pipes in North America.

SeAH Steel Holdings disclosed on November 4 that it recorded consolidated revenue of KRW 1.221 trillion and operating profit of KRW 93.3 billion in the third quarter. Revenue rose 32.3% and operating profit increased 134.4% from the same period last year. Net income fell 58.2% to KRW 6.8 billion. Compared with the previous quarter, revenue rose 4.6%, while both operating profit and net income returned to the black.

The North American market drove the improvement. Although some restrictions on passage through the Strait of Hormuz have been eased, uncertainty over logistics in the Middle East continues. Against this backdrop, demand for oil and gas pipes in North America remained strong, while demand for data center applications also increased. Higher sales volumes and selling prices combined to improve the profitability of the company's Americas sales subsidiary.

Reduced losses at SeAH Wind, the company's UK-based production subsidiary for offshore wind foundations, also contributed to the return to profitability from the previous quarter. Its third-quarter losses narrowed after it recognized provisions for offshore wind projects in advance in the second quarter.

SeAH Steel, its core subsidiary, also returned to profitability, recording separate-basis revenue of KRW 442.3 billion and operating profit of KRW 18 billion. Revenue rose 46.6% from the same period last year. In the domestic market, sales volumes increased, and spreads widened as higher raw material costs were reflected in selling prices. Export volumes, which had been curtailed by changes in the trade environment, recovered. In addition, selling prices for oil country tubular goods (OCTG) in North America rose, and sales of pipes for data center construction increased. However, the company continued to post a net loss, recording KRW 1.3 billion in net losses.

The company forecast that investment in North American energy infrastructure would continue in the fourth quarter, keeping demand for OCTG and line pipe strong. It also expects the upward trend in OCTG prices in the United States and rising demand for structural and stainless steel pipes for data centers to continue. The company plans to respond to changes in U.S. trade policy by selectively selling products based on their profitability, while increasing supplies of high-value-added products through investment to upgrade facilities at its U.S. production subsidiary.

In the Middle East, tenders for gas field and offshore projects that had been delayed are taking shape, and the company will respond by leveraging its local production base. Revenue recognition for high-value-added projects, including the Dora gas field project, is also expected to come into view. SeAH Wind will produce orders already secured, gradually raise its capacity utilization, and pursue follow-on orders.

This content was produced with the assistance of AI translation services.