POSCO

In the news

Nippon Steel to immediately appeal South Korea's asset seizure Aug 4, 2020
Japan-South Korea labor row muddles US plans on China Aug 4, 2020
Australia challenges China's graphite crown in EV batteries Jul 25, 2020
Posco to shut aging furnace as coronavirus erodes steel demand Jul 21, 2020
South Korea sets for August sale of Japan assets over war labor Jun 4, 2020

Company Background

Posco, South Korea's largest steelmaker, produced 41.48 million tons of crude steel in 2014. That made it No. 5 in the world.

Domestic production is concentrated at two integrated mills with blast furnaces, located in the cities of Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province.

The company also set up Southeast Asia's first blast furnace in the western part of Java, Indonesia, in a joint venture with Indonesian state-run enterprise Krakatau Steel.

The Pohang steelworks, South Korea's first plant with a blast furnace, came onstream in 1973. It was primarily funded with grants and soft loans provided by Japan in lieu of war reparations, based on the countries' 1965 treaty on basic relations.

Since the plant opened, Posco has underpinned South Korea's industrialization efforts. In 2000, the company was fully privatized after government-affiliated Korea Development Bank sold its entire stake.

For years, Posco was the dominant supplier of high-end steel plate to domestic customers. Today, the company is locked in a rivalry with Hyundai Steel, which belongs to the Hyundai Motor group and runs three domestic blast furnaces.

The competition centers on steel plate for automobiles and planks for ships.

In response to a surge in Chinese steel production, Posco has sought other revenue sources in recent years, such as trading and energy. Acquisitions, however, swelled the company's debt. Chairman Kwon Oh-joon, who took office in March 2014, said the company would reconsider its diversification strategy and refocus on steelmaking.

Posco is looking to land more orders from not only South Korean companies but also Japanese, European and other global automakers. It aims to leverage its Chinese and Mexican plants for hot-dip galvanized steel plate, used in cars.

The company supplies magnesium sheet, a new type of material, to German automaker Porsche.

Business Summary

POSCO engages in the production of steel products. It operates through the following divisions: Steel, Engineering & Construction and Trading. The Steel division produces cold rolled, hot rolled and stain less steel products, plates, wire rods and silicon steel sheets. The Engineering & Construction division engages in the planning, designing and construction of industrial plants, civil engineering projects, commercial and residential buildings. The Trading division exports and imports steel products and raw materials. The company was founded by Tae-Joon Park on April 1, 1968 and is headquartered in Pohang, South Korea.

Financial Highlights

Dec 2020	KRW	USD
Revenue	57,792.79B	48,981.60M
Gross Profit	4,810.52B	4,077.10M
Operating income	2,349.38B	1,991.19M
Income before tax	1,891.78B	1,603.36M
Net income	1,595.45B	1,352.21M
EBITDA	5,971.12B	5,060.75M
Diluted EPS	20,164.81	17.09
Dividends Per Share	8,000	6.78
Total Assets	79,086.97B	72,803.98M
Total liabilities	31,611.76B	29,100.39M
Total equity	44,131.96B	40,625.94M
Operating cash flow	8,669.19B	7,347.47M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	53,083.51B	60,655.09B	64,977.77B	64,366.84B	57,792.79B
Gross Profit	6,794.74B	8,473.42B	8,176.93B	6,396.30B	4,810.52B
Operating income	2,830.77B	4,523.65B	5,479.50B	3,788.53B	2,349.38B
Income before tax	1,521.53B	4,179.69B	3,562.82B	2,779.53B	1,891.78B
Net income	1,330.08B	2,757.05B	1,672.89B	1,828.41B	1,595.45B
EBITDA	6,020.60B	7,821.07B	8,747.13B	7,249.64B	5,971.12B
Diluted EPS	16,627	34,463.81	20,910.98	22,822.75	20,164.81
Dividends Per Share	8,000	8,000	10,000	10,000	8,000
Total Assets	79,762.99B	79,024.95B	78,248.26B	79,058.66B	79,086.97B
Total liabilities	34,921.51B	32,557.86B	31,688.09B	31,463.33B	31,611.76B
Total equity	41,376.51B	42,735.95B	43,171.87B	44,272.48B	44,131.96B
Operating cash flow	5,201.32B	5,539.52B	5,823.55B	5,988.16B	8,669.19B

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020
Revenue	45,754.16M	53,652.85M	59,042.90M	55,194.40M	48,981.60M
Gross Profit	5,856.57M	7,495.22M	7,430.08M	5,484.81M	4,077.10M
Operating income	2,439.92M	4,001.42M	4,979.02M	3,248.65M	1,991.19M
Income before tax	1,311.44M	3,697.17M	3,237.40M	2,383.44M	1,603.36M
Net income	1,146.43M	2,438.77M	1,520.09M	1,567.86M	1,352.21M
EBITDA	5,189.32M	6,918.18M	7,948.19M	6,216.55M	5,060.75M
Diluted EPS	14.33	30.48	19.00	19.57	17.09
Dividends Per Share	6.89	7.07	9.08	8.57	6.78
Total Assets	66,039.89M	73,817.15M	70,127.49M	68,363.23M	72,803.98M
Total liabilities	28,913.32M	30,412.28M	28,399.44M	27,206.83M	29,100.39M
Total equity	34,257.75M	39,919.62M	38,691.40M	38,283.09M	40,625.94M
Operating cash flow	4,483.16M	4,900.02M	5,291.65M	5,134.83M	7,347.47M

Valuation Measures

Dec 2020
PER	13.48
ROA	2.01%
ROE	3.60%
Operating margin	4.06%
Profit margin	2.76%

Key executives

Co-Chief Executive Officer & Director: Jeong-Woo Choi
Co-Chief Executive Officer & Director: Jung-Son Chon
Co-President, Co-CEO & Director: In-Hwa Chang
Senior Managing Director & Head-Finance: Seung-Kyu Lim
Head-Legal & Compliance Support: Seong-Wook Lee

Shareholders

POSCO (9.8%)
National Pension Service of Korea (9.7%)
NIPPON STEEL CORP. (3.3%)
BlackRock Fund Advisors (2.1%)
GIC Pte Ltd. (Investment Management) (1.9%)
The Vanguard Group, Inc. (1.7%)
Fidelity Management & Research Co. LLC (1.7%)
POSCO Employee Stock Ownership Association (1.6%)
Samsung Asset Management Co., Ltd. (0.8%)
AllianceBernstein LP (0.8%)

Contact Details

Website:http://www.posco.com
Address: POSCO Center, 892 Daechi 4-dong, Seoul, 06194, South Korea
Phone: +82.2.3457.0114

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Competitors

Baoshan Iron & Steel Co., Ltd. Class A
GS Holdings Corp.
NIPPON STEEL CORP.
ArcelorMittal SA
Hyundai Steel Company
Korea Electric Power Corporation
POSCO M-TECH Co., Ltd.
S-Oil Corporation
Korea Gas Corporation
PJ Metal Co., Ltd.
SK Inc.
DB Inc.
SeAH Holdings Corporation
ILJIN MATERIALS CO., LTD.
Dongkuk Industries Co., Ltd.
KUMHO Engineering & Construction Co., Ltd.
Hanjin Heavy Industries & Construction Co., Ltd
Dongbu Corporation
Kye-Ryong Construction Industrial Co., Ltd.
POSCO Chemical Co., Ltd.
Ternium S.A. Sponsored ADR
Daiyang Metal Co., Ltd.
Bookook Steel Co., Ltd.
Chosun Refractories Co., Ltd
PBG S.A.
Outokumpu Oyj
Orbite Technologies Inc. Class A

Last Updated on 3 Dec, 2021