SeAH Steel Holdings achieved its highest quarterly revenue since its split in 2018, driven by strong sales of energy pipes in North America. The company reported significant improvements in profitability, with operating profit more than doubling compared to the same period last year.
On November 4, SeAH Steel announced that its consolidated revenue for the third quarter reached 1.22 trillion won, with an operating profit of 933 billion won. This marks a 32.3% increase in revenue and a 134.4% rise in operating profit compared to the same quarter last year. However, net profit fell to approximately 68 billion won, a decrease of 58.2% year-on-year.
The improvement in performance was attributed to increased sales of pipes in the North American oil and gas market. Although restrictions on passage through the Strait of Hormuz have eased somewhat, logistical uncertainties in the Middle East persist, leading to heightened demand for energy pipes and construction pipes for data centers in North America.
Notably, the increase in sales volume and prices of oil and gas pipes in North America has enhanced the profitability of the company's U.S. sales subsidiary. The expansion of sales, particularly in oil country tubular goods (OCTG), also positively impacted overall performance.
SeAH Steel, the company's main subsidiary, also showed signs of recovery. Its standalone revenue for the third quarter was 442.3 billion won, a 46.6% increase from the same period last year. Operating profit turned positive at 18 billion won, compared to an operating loss of 5.4 billion won during the same quarter last year.
In the domestic market, increased sales volume and the ability to pass on rising raw material costs to product prices contributed to improved profitability. The export sector also saw a recovery in volumes that had been affected by changes in the U.S. trade environment, along with increased sales of pipes for data center construction.
Meanwhile, SeAH Steel is accelerating its efforts to penetrate the energy infrastructure market, having secured contracts to supply high-value pipes for carbon capture, utilization, and storage (CCUS) projects led by the UK government.
* This article has been translated by AI.
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