LG Energy Solution (KRX: 373220) has announced its preliminary results for the fourth quarter of 2022, revealing a solid performance for the year.
The company reported an annual provisional performance of KRW 25.6 trillion in revenue and KRW 1.2 trillion in operating profit, representing a YoY increase of 43.4% and 57.9%, respectively.
In the fourth quarter, the company reported KRW 8.5 trillion in revenue and 237.4 billion won in operating profit, representing a QoQ increase of 11.6% but a YoY decrease of 54.5%.
However, it's worth noting that revenue increased 92.3% YoY, and operating profit improved 213.6% YoY.
The company attributes its solid performance to increased customer demand and the operation of its joint ventures with General Motors.
However, operating profit was temporarily impacted by one-time costs such as performance-related bonuses and rising ESS replacement costs due to increasing costs such as material costs, logistics costs, and exchange rates.
Nevertheless, LG Energy Solution said, "Excluding the impact of one-time costs, operating profit in the fourth quarter of 2022 was in line with the third quarter."
LG Energy Solution specializes in energy storage solutions, energy management systems, and energy efficiency solutions.
The company's strong performance reflects growing interest and investment in these areas as the world moves toward a more sustainable and renewable energy future.
The company's ability to manage one-time costs and still deliver an operating profit in Q4, similar to Q3, underscores its resilience and long-term growth potential.
It will be interesting to see how LG Energy Solution performs significantly in the coming year as competition increases in the energy storage and management space.
Nevertheless, the preliminary results for 2022 show that the company is well-positioned to take advantage of the growing market opportunities.
