Posco Chemical records 114% increase in Q1 profit

Posco Chemical said on Monday that it has recorded 467.2 billion won in sales and 34.3 billion won in operating income in the first quarter of 2021.

It is a rise of 20.6% and 114.4%, respectively, from the same time period a year ago, and the company’s highest quarterly performance to date.

Its energy material business, which sells battery cathode and anodes, was the biggest contributor to growth, Posco Chemical said.

Sales of cathode in the quarter reached 154.7 billion won, a rise of 236% from a year prior. Sales of anode was 41 billion won, a rise of 26% over the same time period.

Sales of refractories recovered thanks to increased operation rate of steel-making customers. Sales from lime chemical declined, but overall sales from chemicals increased thanks to increase in oil prices.

Subsidiary PMC Tech saw increased demand for its bed cokes from China due to their low carbon policies. The company recorded 28.8% in operating margin rate in the first quarter.

Posco Chemical said it will continue investments into its cathode business to prepare for the expansion of the electric vehicle market.