“LG Energy Solution announced on the 13th that its operating profit for the third quarter of this year was estimated at 601.3 billion won, a 34.1% increase compared to the same period last year. This profit marks the second consecutive quarter of surplus excluding subsidies, driven by rising demand for energy storage systems (ESS).
The Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA) amounted to 365.5 billion won. Excluding this, the operating profit was 235.8 billion won.
Despite an increase in shipments from local ESS production, the expiration of EV purchase subsidies in September led to a decrease in orders from key EV customers, resulting in a slight reduction in subsidies compared to the previous quarter (490.8 billion won).
Excluding APMC, the operating profit continued to show a surplus for two consecutive quarters after recording a surplus (1.4 billion won) in six quarters during the second quarter.
Revenue was 5.6999 trillion won, a 17.1% decrease compared to the same period last year.
Compared to the previous quarter, revenue and operating profit increased by 2.4% and 22.2%, respectively.
LG Energy Solution explained that its performance showed an improvement trend due to continuous efforts in reducing fixed costs, the commencement of profits from North American ESS shipments, and improvements in the small business sector driven by increased shipments of cylindrical EV and pouch customer orders.”