KOGAS Q3 Net Profit More Than Triples on Equity Gains, Lower Costs

Korea Gas Corp. (KOGAS), South Korea's state-run gas utility, announced that its net profit more than tripled in the third quarter of 2023. The surge in profit is attributed to increased gains from equity investments and reduced interest costs.

For the three months ending in September, KOGAS's net profit reached 272.4 billion won (approximately $204.6 million), a substantial rise from 86.8 billion won during the same period last year. A company spokesperson noted, "Gains from investments in affiliated companies and lower interest costs on outstanding loans boosted our quarterly bottom line."

Operating profit also saw a significant increase, rising 51.1% to 587.8 billion won from 388.99 billion won a year earlier. Sales climbed 17.8% to 7.5 trillion won, up from 6.37 trillion won.

The improved performance was largely driven by earnings from a liquefied natural gas (LNG) project in Canada and a gas exploration project in Mozambique, in which KOGAS holds stakes. Over the first nine months of the year, the company's net profit more than doubled to 1.16 trillion won, compared to 539.09 billion won in the previous year.

KOGAS's positive results reflect a broader recovery in the energy sector, showcasing the company's strategic investments and cost management efforts.