GS Corp. disclosed on the 6th that it posted sales of 6.5359 trillion won, operating profit of 870.6 billion won, and net profit of 407.7 billion won in the third quarter of this year. Compared with the same period a year earlier, sales (6.3859 trillion won) rose 2.4%, operating profit (631.6 billion won) increased 37.8%, and net profit (38.7 billion won) jumped 953.3%. Versus the previous quarter, sales (5.9336 trillion won) grew 10.2%, operating profit (486 billion won) surged 79.1%, and net profit (88.5 billion won) climbed 360.9%.
GS Corp.'s improved third-quarter operating profit was driven by stable international oil prices and better refining margins. Reflecting this, the refining and lubricants institutional sector of GS Caltex, which accounts for the largest share of GS Corp.'s results, delivered solid performance on improved refining margins, while the petrochemicals part continued to post losses from the previous quarter. GS Caltex's third-quarter sales were 11.0386 trillion won, operating profit was 372.1 billion won, and net profit was 229.5 billion won. Compared with the prior quarter, sales increased 3%, and operating profit also swung to a profit.
GS Energy's third-quarter sales were 1.4468 trillion won and operating profit was 599 billion won. Compared with the previous quarter, sales rose 23% and operating profit increased 74%, and year over year sales were up 9% and operating profit improved 38%. However, GS Energy's power and district energy institutional sector sales (354.8 billion won) and operating profit (58.1 billion won) fell 19% and 32%, respectively, from a year earlier due to lower system marginal price (SMP) in the wholesale power market. GS said, "Operating profit in GS Energy's power and district energy institutional sector and resource development institutional sector decreased from a year earlier due to factors such as the drop in SMP and lower oil prices."
A GS official said, "Third-quarter results rose from a year earlier thanks to improved refining margins and stabilized oil prices, but unlike the refining institutional sector, the petrochemicals institutional sector continued to underperform as petrochemical product margins remained weak due to uncertainty over U.S. tariff policy, a decline in global trade volumes, and concerns about oversupply, and overall profitability at power generation subsidiaries fell with the drop in SMP," adding, "In the fourth quarter, refining margins remain favorable, while the petrochemicals institutional sector continues to be sluggish. For power generation subsidiaries, which are entering a relatively peak season, we expect results to recover alongside a rise in SMP."