December 22, 2024

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LS Eco Energy’s production plant in Vietnam (LS Eco Energy)

LS Eco Energy, a subsidiary of LS Cable & System, said Tuesday it posted record-high revenue in the third quarter, driven by strong export performance in its power and telecommunications businesses.

The company reported revenue of 223.4 billion won ($156 million) for the July-September period, up 33 percent from a year earlier. Operating profit rose 14 percent to 12.5 billion won, while net profit surged 227 percent to 8.4 billion won, fueled by strong sales in North America and Europe.

Demand for high-performance power cables and telecommunications products was a key driver of growth, particularly in North America. The US policy to reduce reliance on Chinese-made telecom cables further boosted sales, the company said.

In August, LS-VINA, the company’s Vietnam-based subsidiary, secured a deal to supply ultra-high-voltage cables for urban development and infrastructure projects. It also strengthened its role in modernizing Vietnam’s power grid through large-scale power cable deliveries, the company added.

The company explained it has also expanded exports to Europe and North America, supplying $40 million worth of cables to Denmark in early 2024 and completing Underwriters Laboratories certification for underground residential distribution aluminum cables to solidify its US market presence.

In telecommunications, exports of unshielded twisted pair cables to the US increased by over 30 percent year-on-year, with annual sales expected to double to $100 million. Fire-retardant CMP cables, widely used in data centers, now account for 32 percent of these sales, up from 13 percent in 2020.

Looking ahead, LS Eco Energy said it is exploring new growth opportunities, including submarine cable projects targeting European and Asian markets.

“With our strong foothold in Vietnam and global expansion, we are optimistic about delivering record-breaking results and entering new markets,” a company official said.

By Park Li-na (linapark@heraldcorp.com)