(LEAD) Samsung SDI Q3 net profit jumps to 342.2 bln won on ESS deals

Samsung SDI Co., a leading South Korean battery producer, reported a substantial increase in its third-quarter net profit to 342.2 billion won (approximately US$255.3 million) in October, driven by a surge in orders for energy storage systems (ESS). This marked a stark contrast to the 5.7 billion won net profit recorded during the same quarter last year.

Key contributors to this financial turnaround include long-term contracts for ESS solutions secured from U.S. clients, as highlighted by a company official. The company's operating profit for the period reached 407.8 billion won, a significant improvement from the 591.3 billion won loss incurred in the year prior. Sales for Samsung SDI escalated by 52.6 percent to 4.68 trillion won, up from 3.07 trillion won, while its net income expanded to 869.9 billion won from a 377 billion won loss during the same timeframe.

The company anticipates sustained earnings recovery in the fourth quarter, fueled by further ESS battery orders. In its ESS business, Samsung SDI intends to bolster its local supply chain in the United States and ramp up mass production of prismatic lithium iron phosphate (LFP) batteries for ESS applications.