LG Energy Solution said on Wednesday it posted third-quarter revenue of 9.64 trillion won and operating profit of 756.0 billion won. Revenue rose 59 percent and operating profit gained 25.7 percent from a year earlier. The operating margin was 7.8 percent.

The increase was larger from the previous quarter. Revenue rose 27.6 percent from 7.56 trillion won in the second quarter, and operating profit jumped 567.3 percent from 113.3 billion won.

The third-quarter operating profit includes 416.9 billion won in tax credits, including the advanced manufacturing production tax credit (45X) under the U.S. Inflation Reduction Act (IRA).

Excluding that amount, revenue is 9.23 trillion won and operating profit is 339.1 billion won. More than half of the 756.0 billion won in operating profit came from tax credits.

Cumulative third-quarter results showed revenue and operating profit moving in opposite directions. Cumulative revenue was 23.76 trillion won, up 26.1 percent from 18.84 trillion won a year earlier. Cumulative operating profit was 661.6 billion won, down 54.9 percent from 1.47 trillion won a year earlier. Operating profit rose in the third quarter, but the cumulative figure continued to fall.