Korea Gas Corporation announced on the 13th that its operating profit in the first quarter of this year recorded 833.9 billion won, a decrease of 87.7 billion won (9.5%) compared to the same period last year. Revenue decreased to 12.7327 trillion won, down 779 million won (0.6%) from a year ago. Net profit also fell to 367.2 billion won, a reduction of 39.7 billion won (9.8%) year-on-year.
Despite an increase in sales volume due to a drop in average temperatures and rising industrial gas demand, revenue still declined. The selling price decreased from 19.66 won per megajoule (MJ) in the first quarter of last year to 18.72 won per MJ in the first quarter of this year, impacted by fluctuations in international energy prices. The decrease in net profit was influenced by reductions in net interest expense and corporate tax expense, as well as the contraction of operating profit and equity income from affiliates.
Operating profit also declined compared to the same period last year, as the investment compensation decreased by 63.4 billion won due to the effects of falling interest rates. However, although the Australian LNG business was impacted by the decline in international natural gas prices in the overseas business sector, the operating profit from major overseas projects remained at a level similar to that of the same period last year, thanks to the stabilization of the Mozambique project.
A Korea Gas Corporation official noted, "The debt ratio improved by 31 percentage points from 433% at the end of last year to 402% in the first quarter of this year," and added, "We will continue to strive for enhanced financial soundness by increasing overseas business recovery amounts, adjusting projects, controlling new debt increases through management efficiency, and expanding capital through revenue improvement."