(2nd LD) POSCO Holdings Q3 net falls 1.8 pct on one-off losses

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SEOUL, Nov. 2 (Yonhap) -- POSCO Holdings Inc., South Korea's leading steelmaker, said Monday its third-quarter net profit fell 1.8 percent from a year earlier due to one-off losses.

Net profit for the three months that ended in September fell to 380 billion won (US$282.5 million) from 390 billion won in the same period last year, the company said in a regulatory filing.

"One-off losses in POSCO's high-purity nickel business and POSCO International's hotel business in Myanmar cut into the bottom line," a company spokesperson said over the phone.

In its rechargeable battery materials segment, lower global lithium prices and seasonal factors, including reduced production at its lithium plant in Argentina, also weighed on quarterly results, the company said.

Operating profit rose 47.9 percent to 940 billion won in the third quarter from 640 billion won a year ago. Sales climbed 10.9 percent to 19.14 trillion won from 17.26 trillion won.

In the steelmaking division, higher selling prices and increased sales volumes supported the group's overall profitability, it said.

Equity-method earnings from affiliates, including POSCO International Corp., also contributed to the quarterly bottom line.

POSCO International reported a net profit of 401.8 billion won for the quarter, up 91.6 percent from a year earlier, driven by increased sales of energy resources.

The trading arm of POSCO Holdings operates gas fields in Myanmar and Australia, and is involved in exploration projects in Malaysia's PM524 block and Indonesia's Bunga block.

To enhance shareholder value, the company plans to use 10 percent of 2.5 trillion won that was raised through the sale of its stakes in affiliates POSCO International and POSCO DX to buy back treasury stocks for cancellation.

For the January-September period, POSCO Holdings' net profit more than doubled to 1.68 trillion won from 810 billion won a year earlier.

Operating profit rose 36.2 percent on-year to 2.47 trillion won in the first nine months, while sales increased 7.7 percent to 56.28 trillion won.

kyongae.choi@yna.co.kr
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