Korea Gas Corporation (KOGAS) disclosed on the 26th that last year, on a consolidation basis, revenue was 35.7273 trillion won and operating profit was 2.1012 trillion won. They fell 6.9% and 30%, respectively, from a year earlier. Net profit for the period plunged 88.5% to 132.3 billion won.
The corporation said annual sales volume rose by 390,000 tons year over year to 34.51 million tons (t) as the individual pricing plan took hold. However, due to lower oil prices, the average selling price fell 8.3% (1.59 won/MJ).
The decline in operating profit stems from factors such as a reduction in investment remuneration (85.9 billion won) following wholesale price cuts, an increase in gas bill support for vulnerable groups, and the recognition of one-off operating profit reductions (345.5 billion won) due to lower settlement gains from the previous year.
In overseas operations, the Mozambique unit saw operating profit increase on higher sales volume from Coral FLNG, but other overseas subsidiaries recorded lower operating profit due to a decline in selling prices caused by falling international oil prices.
Net profit reflected an asset impairment of 424.4 billion won in the Mozambique project due to falling oil prices and the application of a conservative valuation method. In addition, impairments were recognized for the GLNG (182.2 billion won) and Prelude (60.3 billion won) projects, bringing total asset impairments to 666.9 billion won.
With a partial win in the Korean cargo containment system (KC-1) lawsuit, 120.5 billion won of the provision recognized in 2024 was reversed. As the average balance of borrowing fund decreased and interest rates fell, net interest expense improved by 208.5 billion won, enhancing financial gains and losses.
KOGAS said, "Overseas resource development projects undergo impairment testing every fiscal year," adding, "The size of impairments is determined by external variables beyond the corporation's control, such as international oil prices, interest rates, and the creditworthiness of countries where it invests."
Separate net profit, which forms the basis for shareholder dividends, came to 699.3 billion won, down 94.1 billion won from 793.4 billion won in 2024. KOGAS decided to pay dividends of 1,154 won per share. It will distribute shareholder dividends for two consecutive years for the first time since 2019.
Last year, on a consolidation basis, total liability was tallied at 42.8289 trillion won, down 8.6% from the prior year. The debt ratio was 397%, a decline of 36 percentage points (p) from a year earlier. The debt ratio falling below 400% is the first time since 2021, before the Russia-Ukraine war.
However, receivables for civilian raw material costs remained high at 13.8649 trillion won, similar to the level at the end of the previous year.