Ecopro Materials posts second-quarter operating loss after GEN disruption

Ecopro Materials, a battery-cathode precursor producer, reported a 10.6 billion won operating loss in the second quarter, compared with a profit a year earlier, after disruption at its Indonesian Green Eco Nickel, or GEN, smelter hurt profitability despite higher sales.

Revenue rose 129 percent from a year earlier to 179 billion won, which the company attributed to expanding sales volumes of precursor materials to external customers. Loss from continuing operations before income tax was 10.5 billion won, compared with a profit a year earlier, while net income also moved from a year-earlier profit to a 12.9 billion won loss.

Ecopro Materials cited a temporary reduction in operating rates at GEN after heavy local rain and a mudslide interrupted operations at the smelter. GEN has completed restoration measures and resumed production, and the company expects sales volumes to recover as the smelter gradually increases its operating rate. The company also plans to diversify its customer portfolio through product shipments to new customers in North America.

Song Ho-jun, Ecopro's chief executive, commented on the group's investment plans. "Although uncertainty in the business environment persists, we are proceeding as planned with efforts to strengthen supply-chain competitiveness and investments in future growth businesses," he said.