Korea Gas (036460) Q1 2025 earnings summary

Executive summary

• Sales volume increased 4.1% year-over-year in 1Q 2025, driven by higher demand for city gas and power sectors.

• Revenue for Q1 2025 was KRW 12,732.7 billion, with operating profit of KRW 833.9 billion and net income of KRW 367.2 billion, all showing year-over-year declines.

• The company remains the sole wholesale supplier of natural gas in Korea, with a 100% market share excluding direct imports for self-consumption.

• Total assets at the end of Q1 2025 were KRW 55,481.5 billion, with liabilities of KRW 44,426.0 billion and equity of KRW 11,055.5 billion.

Financial highlights

• 1Q 2025 revenue: KRW 12,732.7 billion, down 0.6% year-over-year.

• Operating profit: KRW 833.9 billion, down 9.5% year-over-year.

• Net income: KRW 367.2 billion, down 9.8% year-over-year.

• Operating margin for Q1 2025 was 6.6%, and net margin was 2.9%.

• Dividend per share for 2024 was KRW 1,455, with a payout ratio of 11.1%.

Outlook and guidance

• Ongoing investments in domestic and overseas projects, with 2025 CAPEX forecast at KRW 1,891.6 billion.

• Expansion of pipeline network and LNG terminal capacity planned through 2028.

• Ongoing investments in LNG infrastructure, hydrogen, and renewable energy projects are expected to support long-term growth.

• The company expects continued seasonal fluctuations, with higher sales and profits in winter due to heating demand.