Seoul: POSCO Holdings Inc., South Korea's leading steelmaker, announced on Thursday that its net profit for the first quarter saw a slight increase compared to the previous year. This growth was attributed to equity gains from its affiliates.

According to Yonhap News Agency, the company's net profit for the first three months of the year rose to 540 billion won (US$364 million), up from 340 billion won in the same period the previous year. The positive results were bolstered by equity income from its affiliates, notably POSCO International Corp.

POSCO International's own financial performance contributed significantly to the group's results, reporting a net profit of 277.3 billion won for the quarter. This marks a 36 percent increase from the previous year, driven by higher sales of energy resources. The trading arm of POSCO Holdings is actively involved in gas field operations in Myanmar and Australia, as well as exploration projects in Malaysia's PM524 block and Indonesia's Bunga block.

The company's operating profit also saw an increase, rising 0.57 percent to 710 billion won from 570 billion won over the same period. Additionally, sales climbed 2.5 percent to 17.88 trillion won from 17.44 trillion won. However, the steelmaking division faced challenges with higher raw material costs, partly due to a weaker won, which affected profit margins despite increased sales of steel products.

In the rechargeable battery materials segment, POSCO Holdings' affiliate, POSCO Future M, returned to profitability. The segment's performance improved due to expanded cathode sales in new markets and a stronger demand for high-end products.