In This Article:
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Consolidated Sales: Increased by 4% QoQ to KRW2.7733 trillion.
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Operating Profit: Recorded a smaller loss at negative KRW81 billion.
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Pretax Profit: Negative KRW370.3 billion.
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Net Income: Negative KRW387.7 billion.
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Total Assets (Non-Financial): Increased by KRW3.7412 trillion to KRW27.21516 trillion.
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Cash and Cash Equivalents: Increased by KRW53.4 billion to KRW2.1354 trillion.
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Liabilities (Non-Financial): Increased by KRW3.2652 trillion to KRW17.5303 trillion.
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Net Debt: Increased by KRW3.446 trillion to KRW10.3125 trillion.
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Liabilities to Equity Ratio (Non-Financial): Increased by 27.284%.
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Net Debt to Equity Ratio: Increased by 28.208%.
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Renewable Energy Segment Loss: Reduced to negative KRW41 billion.
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Chemicals Segment Operating Loss: KRW31.1 billion.
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Advanced Material Operative Profit: Declined by 32% QoQ to KRW6.1 billion.
Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Consolidated sales for Q3 2024 increased by 4% quarter-over-quarter to KRW2.7733 trillion, driven by growth in renewable energy power generation.
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The company reduced its operating loss in Q3 2024 compared to the previous quarter, indicating improved profitability in power generation.
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Cash and cash equivalents increased by KRW53.4 billion from the end of last year, reaching KRW2.1354 trillion.
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The renewable energy segment showed reduced losses due to increased sales of power generation assets and better profitability in EPC.
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The company expects a significant increase in sales associated with power generation asset sales in Q4 2024, projected at KRW1.2 trillion.
Negative Points
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Consolidated operating profit recorded a loss of KRW81 billion, and net income was negative KRW387.7 billion for Q3 2024.
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The liabilities to equity ratio for non-financial businesses increased by 27.284%, indicating a rise in financial leverage.
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The chemicals segment recorded an operating loss of KRW31.1 billion due to a sluggish market and increased freight charges.
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Advanced materials segment saw a 32% decline in operating profit quarter-over-quarter, attributed to summer vacations of major customers.
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The equity method earnings continued to show losses due to high-cost raw material input and declining international oil prices.
Q & A Highlights
Q: The EPC and power generation asset sales for Q3 were below guidance. Can you explain the discrepancy and whether it will be deferred to Q4? A: The guidance for Q3 was KRW800 billion, but actual sales were KRW578.5 billion due to project deferment. This will be fulfilled in Q4, maintaining the annual guidance of KRW2.5 trillion. An-Shik Yoon, CFO