LX International second-quarter operating profit doubles on resource price gains

LX International said Monday its second-quarter operating profit more than doubled from a year earlier, driven by rising resource prices and increased trading volumes.

Operating profit for the three months ended June 30 rose 114.2 percent to 118 billion won ($82.2 million) from 55 billion won. The company attributed the surge to improved market conditions for nickel and palm oil, alongside higher sea freight rates that boosted its logistics division.

Revenue climbed 24.7 percent to 4.78 trillion won ($3.33 billion), while net income increased 40.2 percent to 78.8 billion won ($55 million).

Within the resources segment, profits from the AKP nickel mine in Indonesia and favorable palm oil market trends contributed an additional 12.9 billion won ($9 million). However, these gains were partially tempered by lower coal production and reduced palm oil sales volume, which trimmed segment earnings by 10.5 billion won ($7.32 million). Overall, the resources unit reported 365 billion won in revenue and 21.6 billion won in operating profit.

The trading and new growth divisions saw operating profit rise to 45.2 billion won on revenue of 2.16 trillion won, benefiting from higher prices for key commodities and better financial performance from LX Glass. Similarly, the logistics unit capitalized on rising ocean freight rates and increased cargo volume to post 51 billion won in operating profit on 2.25 trillion won in sales.

"We are pushing to acquire additional promising mineral assets while operating the AKP nickel mine in Indonesia, and expanding into secondary battery materials such as nickel sulfate, MHP, precursors and cathode materials," the company said regarding its growth investment direction.