LX International logs record profit in 2022 on higher commodity prices, logistics

SEOUL– LX International Corp. said Tuesday it posted a record profit in 2022 on a rise in commodities prices and global freight rates.

Operating income reached 965.5 billion won (US$768.2 million) in the January-December period, up 47.1 percent from 656.2 billion won a year earlier, the South Korean resources trading company said in a regulatory filing.

Annual sales rose 12.4 percent on-year to a record 18.75 trillion won. Net profit came to 779.3 billion won, up 44.2 percent from the previous year.

“External conditions, such as the rise in resources prices and freight costs, improved and efforts to maximize profits have worked, contributing to the stronger top-line and profit growth,” the company said.

LX International said it will make further inroads into critical minerals used in the manufacturing of secondary batteries, such as nickel, and other renewable energy sectors as its new growth drivers.

It has said 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, 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 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.

In the fourth quarter, LX International’s operating income fell 23.9 percent on-year to 157.9 billion won, with sales declining 9.6 percent to 4.11 trillion won. Net profit sank 49.3 percent from a year earlier.

Shares in LX International declined 2.34 percent to 33,400 won on the main Seoul bourse on Tuesday, underperforming the broader KOSPI’s 0.55 percent gain. The earnings results were released after the market opened.

Source: Yonhap News Agency

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