LX International posted operating profit of 117.8 billion won ($82.2 million) in the second quarter on a consolidated basis, up 114.2 percent from the same period last year, the company announced Monday. Sales rose 24.7 percent over the same period to 4.78 trillion won.
Rising global commodity prices, higher maritime freight rates and increased cargo volumes were the key drivers of the earnings expansion. At the AKP nickel mine in Indonesia, profit grew on higher nickel prices and increased output, while the palm oil business benefited from an upturn in palm oil market conditions.
A recovery in market conditions for major trading items — including IT components and petrochemical products — along with higher sales volumes also contributed to improved profitability. The Shanghai Containerized Freight Index rose 39.1 percent year-on-year, lifting results in the logistics segment.
"Earnings increased sharply compared to the same period last year, driven by rising global commodity markets and improved profitability in the trading segment," a company official said. "We are continuing to pursue additional acquisitions of promising mineral assets such as nickel and bauxite."
The official added that the company would "accelerate the search for new revenue sources through portfolio diversification and geographic expansion, while focusing on delivering tangible results."
yeongdai@heraldcorp.com
