LS Eco Energy's production line in Vietnam / Courtesy of LS Eco Energy

LS Eco Energy is on track to achieve robust earnings growth due to an increase in demand for cables used in power and telecommunications systems, the company said Thursday.

According to the cable maker, sales reached 223.4 billion won ($152.4 million) in the third quarter, a 33 percent increase from the previous year. Operating profit and net profit also surged by 14 percent and 227 percent, respectively, during the same period.

This growth was driven by strong exports of the company's value-added products, such as ultra-high-voltage cables and LAN cables, to Europe and North America. In particular, sales of 10-gigabit LAN cables made a significant contribution to the earnings growth, driven by the recovery of the construction market in North America, according to the company.

The global movement to expand power grids has also enabled the company to win more orders for ultra-high-voltage cables.

In August, LS Eco Energy said its Vietnamese subsidiary, LS-VINA, would supply the cables to the country's state-run Vietnam Electricity. The cables will be used for infrastructure development in key regions undergoing large-scale projects, such as new city developments and airport construction.

The subsidiary is the only producer of ultra-high-voltage cables in the nation, and has a dominant market share of 80 percent there, according to the company.

"LS Eco Energy is only capable of manufacturing the cables in Vietnam, so we have been able to win the competitive edge in participating in the government-driven mega infrastructure project," an official from the company said. "We expect stably continued sales growth there as an industry leader there."

The company is also widening its presence in Europe. LS Eco Energy supplied cables worth $40 million to Denmark in the first half of 2024.

The telecom business also boosts its earnings growth. LAN cable exports to the U.S. are also increasing at a rapid pace due to the country's trade tensions with China. LS Eco Energy expects LAN cables' 2024 annual sales to almost double to $100 million from a year earlier.

"Our earnings are widely expected to increase each year on our expanded client bases in key revenue areas, such as data centers and government-driven infrastructure projects," the official said.