LG Energy Solution profit rises as North American ESS exports surge

LG Energy Solution (LGES), Korea's leading battery maker, said Thursday its estimated operating profit rose 25.7 percent in the third quarter on strong exports of energy storage systems (ESS).

In the three-month period that ended in September, operating profit rose to 756 billion won ($564.2 million) from 601.3 billion won a year earlier, the company said in a press release.

"Increased ESS shipments to North American markets and mid- and low-priced pouch-type battery sales to Europe helped boost the bottom line despite a prolonged slowdown in the EV sector," a company spokesperson said.

Sales jumped 59 percent to 9.64 trillion won in the third quarter from 6.06 trillion won a year ago.

LGES received a tax credit of 416.9 billion won under the Advanced Manufacturing Production Credit (AMPC) program of the U.S. Inflation Reduction Act, the company said.

Excluding the AMPC, the company posted an operating profit of 339.1 billion won in the September quarter.

From January to September, operating profit plunged 54.9 percent to 661.6 billion won from 1.46 trillion won a year earlier.

Sales climbed 26.1 percent to 23.76 trillion won in the first nine months from 18.84 trillion won a year earlier.

The company's final third quarter earnings results are due on Nov. 3.

Yonhap