LX International has more than doubled its operating profit for the second quarter, driven by rising resource prices and a recovery in logistics rates. Improved profitability in its nickel and palm businesses, along with growth in trading and logistics, supported the company's performance.
On August 3, LX International announced that it recorded consolidated revenue of 4.77 trillion won and an operating profit of 117.8 billion won for the second quarter.
Compared to the same period last year, revenue increased by 24.7%, while operating profit rose by 114.2%. The increases amounted to 946.1 billion won in revenue and 62.8 billion won in operating profit.
The company's nickel mine in Indonesia benefited from higher nickel sales prices and increased production. The palm business also saw expanded profits due to rising palm oil prices.
Key trading items, including IT components and petrochemical products, experienced improved profitability due to market recovery and increased sales volumes. In the logistics sector, cargo volume increased, and shipping rates rose.
The Shanghai Container Freight Index (SCFI) rose by 39.1% compared to the same period last year. LX International noted that the increase in shipping rates contributed to the improved performance of its logistics sector.
The operating profit margin for the second quarter was approximately 2.5%, up about 1.0 percentage point from 1.4% in the same period last year.
LX International is pursuing additional acquisitions of promising mineral assets, such as nickel and bauxite, to reduce performance volatility due to changes in resource prices. The company plans to diversify its business and regions to secure new revenue sources.
An LX International official stated, "The significant increase in performance was driven by the rise in global resource prices and improved profitability in the trading sector. We will focus on diversifying our business portfolio and regions to achieve tangible results."
* This article has been translated by AI.
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