Posco International, the general trading and energy arm of Korean steel giant Posco Holdings, said Tuesday its net profit rose 12.5 percent on year in 2023.

Net profit came to 680.4 billion won ($509.6 million) on a consolidated basis in 2023, compared with a net profit of 604.9 billion won in 2022, the company said in a regulatory filing.

Operating profit rose to 1.16 trillion won, marking a 28.9 percent on-year increase. But sales fell 12.8 percent to 33.1 trillion won last year.

A Posco International official said profit in the company’s energy business increased following its merger with Posco Energy, while its overall profitability also improved thanks to sales of environmentally friendly industrial materials to Europe. The merger between the two Posco units took place in late 2022.