SEOUL– LX International Corp. said Friday its third-quarter net profit grew 38.9 percent from a year earlier on the back of a rise in commodities prices and a weaker Korean currency.
Net income came to 247.5 billion won (US$174.6 million) for the July-September period, compared with 178.2 billion won the previous year, the trading unit of LX Group said in a regulatory filing.
Operating profit reached 272.6 billion won, up 30.1 percent from a year ago. Sales rose 4.8 percent to 4.7 trillion won.
The earnings beat market expectations. The average estimate of net profit by analysts stood at 133.7 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
“Trading profits increased thanks to an upward trend in prices of natural resources, such as coal, and a weaker won,” the company said in a release.
LX International said it is focusing on critical minerals used in secondary batteries, like nickel, and renewable energy as its next strategic business models.
It is looking at multiple nickel mines in Indonesia for potential investment and reviewing business opportunities for intermediate goods as demand for nickel refining or manufacturing of precursors — key processes needed for electric vehicle batteries — is expected to grow rapidly, LX International said.
For the renewable energy segment, LX International plans to bolster its biomass and hydropower capacity.
LX International, formerly LG International Corp., acquired a major stake in South Korea-based Poseung Green Power Co., a biomass power plant operator, early this year in a step toward an expansion into the renewable energy sector.
LX International, split from LG Group last year, is engaged in the development and trading of industrial materials, petrochemical products and electrical and electronic components, as well as mining and logistics.
It has also been expanding its portfolio into the green materials segment, such as biodegradable plastics and biomass energy.
Shares in LX International closed up 0.12 percent to 41,250 won on the main Seoul bourse Friday, outperforming the broader KOSPI’s 0.9 percent decline. The earnings results were released after the market opened.
Source: Yonhap News Agency