POSCO INTERNATIONAL Unveils ‘Corporate and Shareholder Value Enhancement Plan’

CEO Lee Kye-In of POSCO INTERNATIONAL delivers a commemorative speech at a ceremony to mark the completion of the first unit of a gas processing facility at the Senex Energy Atlas Gas Field in Queensland, Australia.

POSCO INTERNATIONAL on Dec. 23 announced a mid- to long-term plan, named “the Corporate and Shareholder Value Enhancement Plan,” to maximize both corporate and shareholder value.

The plan aims to double the shareholder return rate to 50 percent starting in 2025 and significantly strengthen the shareholder return policy by introducing interim dividends. With this plan, the company seeks sustainable growth while taking a leap toward becoming Korea’s leading shareholder-friendly enterprise.

Earlier this year, POSCO INTERNATIONAL set a shareholder return rate of 25 percent as the first step in enhancing shareholder value under its mid-term shareholder-friendly policy.

Now, this new plan sets forth more ambitious goals in that context, demonstrating its intent to further strengthen trust with shareholders.

Additionally, the company has established a target of achieving an annual average growth rate of at least 8 percent in pre-tax profit and generating returns exceeding at least 8 percent on invested capital.

This strategy aims to continuously enhance corporate value by achieving a return on invested capital (ROIC) that surpasses the weighted average cost of capital, ensuring that profits from invested capital exceed the costs of obtaining that capital.

A whole view of a gas processing facility at the Senex Energy Atlas Gas Field in Queensland, completed by Senex Energy, a subsidiary of POSCO INTERNATIONAL. (Photos: POSCO INTERNATIONAL)

POSCO INTERNATIONAL Begins Test Operation of Senex Energy Gas Processing Facility in Australia

A ceremony took place on Nov. 24 to mark the completion of Gas Processing Facility Unit 1, attended by a senator from the Australian federal government.

The production expansion plan announced in 2022 is progressing smoothly, with gradual expansion set to begin in the latter half of 2025.

Starting in 2026, the company will supply 10 percent of Eastern Australia’s gas demand, establishing itself as a leading energy company in Australia.

POSCO INTERNATIONAL said it is successfully executing its production expansion plan via its subsidiary, Senex Energy, bearing the fruit of its growth in natural gas operations in Australia.

The company held the ceremony to mark the completion of gas processing facility at the Senex Energy Atlas Gas Field in Queensland, Australia.

Susan McDonald, Senator of Australia and Shadow Minister for Resources, attended the event alongside other Australian government officials.

Also present were POSCO INTERNATIONAL CEO Lee Kye-In as the representative of Senex Energy’s joint shareholders and Gina Rinehart, Executive Chairman of Hancock Prospecting.

In 2022, POSCO INTERNATIONAL acquired Senex Energy in collaboration with Hancock Prospecting and announced a plan to triple its annual natural gas production from 20 petajoules (PJ, an SI unit for calorimetry) to 60 petajoules. 60 petajoules of natural gas is enough to produce 1.2 million tons of LNG.

Senex Energy, situated in eastern Australia where energy demand is concentrated, plays a crucial role in ensuring a stable energy supply for the region.

The Australian Competition and Consumer Commission predicted in its ‘Eastern Australia Gas Inquiry’ that a domestic gas supply shortage could occur as early as 2027.

In 2023, to expand its gas production, Senex Energy signed long-term gas supply contracts of up to 10 years with eight buyers for approximately 151 petajoules of gas, securing profitability and helping to address the domestic gas supply shortage.

The gas processing facility now entering test operation is crucial infrastructure for gas sales, as the natural gas produced is purified to remove foreign matter, compressed at high pressure, and transported through pipelines to be sold to power plants and city gas services in Eastern Australia.

The completion of Gas Processing Facility Unit 1 marks a significant milestone, showcasing the steady progress of the production expansion project.

Senex Energy is engaged in several projects - including drilling 280 production wells, constructing two more gas processing facilities, and building gas pipelines - with the objective of completing the production expansion by the end of 2025.