LX International said Wednesday its first-quarter operating profit nearly doubled from the previous quarter, as stronger commodity prices and a recovery in trading lifted earnings.
The company reported revenue of 4.21 trillion won ($2.9 billion) and operating profit of 108.9 billion won for the January-March period, according to a regulatory filing.
Revenue rose 4 percent from a year earlier, supported by higher output and sales at key assets including its AKP nickel mine and palm plantations in Indonesia. Operating profit slipped 6.8 percent on-year, however, weighed by lower ocean freight rates, including declines in the Shanghai Containerized Freight Index.
On a sequential basis, operating profit jumped 96.2 percent, marking a sharp rebound in profitability.
The improvement was driven by firmer resource prices, aided by supply control policies in major producing countries such as Indonesia, as well as disruptions tied to tensions around the Strait of Hormuz, the company said.
The resources and trading divisions led the recovery. LX International expanded production and shipments at its core assets amid rising prices, while trading volumes for key items such as methanol also increased.
The logistics division continued to generate stable earnings, supported by its contract logistics business serving corporate clients.
“The company saw a significant improvement in profitability from the previous quarter, driven by a recovery in global commodity markets and improved margins in trading,” an LX International official said.
The company said it will focus on operational efficiency and stable cash generation amid market volatility, while accelerating portfolio diversification through investments in future-facing minerals such as nickel, bauxite and copper, and expansion into energy infrastructure and power solutions.
herim@heraldcorp.com
