SGC Energy (005090) sharply increased its operating profit on the back of a marked turnaround in its power generation business. The company plans to accelerate new energy infrastructure ventures, including artificial intelligence data centers, to secure mid- to long-term growth drivers.
SGC Energy said on the 22nd that it posted third-quarter consolidated revenue of 575.6 billion won ($402 million) and operating profit of 39.9 billion won ($27.9 million). Revenue fell 3.9% from a year earlier, while operating profit rose 57.1%. Net profit came in at 8.2 billion won, swinging to a profit from a loss of 18.5 billion won a year earlier.
For the first nine months, revenue was 1.7641 trillion won, down 3.9% from a year earlier, while operating profit climbed 56.5% to 120.5 billion won. That amounts to 85% of the 142 billion won annual target the company set early this year.
By segment, strength in power generation drove overall profitability. The company defended revenue with a steam sales strategy that links rising fuel costs to selling prices, while an upswing in the system marginal price (SMP) for wholesale electricity also supported results. Revenue and operating profit in the power segment have grown since the first quarter of this year, with operating profit up 147% from a year earlier. The company expects solid power segment results in the fourth quarter as well, anticipating that SMP will rise on seasonal demand.
The construction segment delivered stable earnings as SGC E&C shifted its business structure toward profitability. Geopolitical instability in the Middle East delayed work on some projects, but the company protected margins by focusing on construction cost management and streamlining selling and administrative expenses. In the fourth quarter, it plans to concentrate on broadening new business opportunities to further strengthen mid- to long-term growth.
The glass segment is expanding sales channels for its Glasslock brand products, centered on global markets, while increasing domestic sales of door glass for large-capacity drum washing machines and tableware. In the fourth quarter, the company plans to continue strengthening new product lines and large global distribution channels to accelerate improvements in revenue and profitability.
SGC Energy is also aggressively pursuing its AI data center business as a next-generation growth pillar, aiming to establish itself as a leading AI energy infrastructure company. Construction has already begun on the first phase, with a capacity of 60 megawatts, and the second phase is moving into full swing. The company aims to announce a detailed blueprint for the second phase by the first half of next year.
"In a rapidly changing business environment, we will continue to expand the competitiveness of our core businesses and prove SGC's underlying strength," said Lee Woo-sung, chief executive officer of SGC Energy. "We will concentrate companywide capabilities on taking an early lead in the AI infrastructure market to secure stable mid- to long-term growth drivers."