POSCO International: Doubling Shareholder Returns with Strategic Investments

POSCO International, a global leader in the steel and energy sectors, has announced an ambitious 'Corporate and Shareholder Value-up Plan' to double its shareholder return ratio to 50%. This strategic move aims to enhance shareholder value while maintaining a solid financial position and driving sustainable growth. The company's plan focuses on strategic investments in its energy and steel businesses, with a particular emphasis on the LNG value chain and eco-friendly materials.

POSCO International's first quarter results for 2024 demonstrate the company's ability to generate stable profits despite global economic headwinds. The company reported sales of KRW 7.8 trillion and an operating profit of KRW 265 billion, representing a 23.6% increase compared to the previous quarter. This robust performance is a testament to the company's solid profit structure and its commitment to sustainable growth.

The company's energy sector continues to be a key driver of its success. In the upstream sector, POSCO International plans to triple Senex Energy's production to 60PJ/year by 2025, with sales contracts already secured with eight local clients for the increased gas production of 150PJ. In the midstream sector, the company aims to complete the construction of Gwangyang Tank No. 6 with a capacity of 200K ㎘ this year and extend its capacity further with the construction of Tanks No. 7 and 8 for an additional capacity of 400K ㎘ by 2026. Additionally, POSCO International is expediting its efforts in the renewable energy business, with a goal of establishing a zone of offshore wind farm business that stretches over the west, southwest, and southeast seas and generates 2.0GW by 2025.

In the steel business, POSCO International is focusing on expanding its eco-friendly materials production, particularly in the United States and Europe. The company's strong performance in the first quarter, with a 24.8% increase in operating profit compared to the previous quarter, is a clear indication of the potential in this area. By increasing its overseas production share and production volume, POSCO International aims to improve profitability and strengthen its position as a key supplier of core components for eco-friendly vehicles.

To achieve its goal of doubling shareholder returns, POSCO International plans to allocate dividends around 25% of its payout ratio and consider midway dividends. This strategy aims to enhance shareholder value while maintaining a stable cash flow foundation to support future investments. The company's net debt has been reduced by 8.5% compared to the same period last year, and its EBITDA of 400 billion won secures cash for future investments and shareholder returns.



POSCO International's ambitious 'Corporate and Shareholder Value-up Plan' is a strategic move to drive growth and maximize shareholder returns. By focusing on strategic investments in its energy and steel businesses, the company aims to create a solid foundation for future growth and enhance shareholder value. With a strong first quarter performance and a clear roadmap for growth, POSCO International is well-positioned to achieve its goal of doubling shareholder returns to 50%.