Korea Gas (036460) Q2 2025 earnings summary

Executive summary

• Revenue for H1 2025 was KRW 20.36 trillion, with a modest 0.3% YoY increase reported in one source, but another source notes a 46.9% YoY decrease due to lower gas prices and demand.

• Operating profit fell, with figures of KRW 1.39 trillion (-10.7% YoY) and KRW 1,238.6 billion (-58.8% YoY) reported.

• Net income dropped, with KRW 452.3 billion (-31.5% YoY) and KRW 452.9 billion (-60.5% YoY) cited.

• The company maintained a 100% market share in the domestic natural gas wholesale market.

• Expansion continues in hydrogen and LNG-related new businesses.

Financial highlights

• H1 2025 revenue: KRW 20.36 trillion; operating profit: KRW 1.39 trillion; net income: KRW 452.3 billion.

• Total assets at June 30, 2025: KRW 50,888.6 billion; liabilities: KRW 39,895.8 billion; equity: KRW 10,996.1 billion.

• Cost of sales increased 1.1% YoY; SG&A expenses up 6.8% YoY.

• Cash and cash equivalents increased to KRW 1,051.9 billion.

• Gearing ratio was 75.2%.

Outlook and guidance

• CAPEX is forecast to rise, with KRW 18.9 trillion planned for 2025 and further increases through 2028, focusing on domestic, innovation, and overseas projects.

• Ongoing investments in LNG infrastructure and hydrogen projects are planned.

• The company expects continued volatility in international energy prices and exchange rates.

• Domestic gas demand is expected to remain stable, with growth in hydrogen and LNG new businesses.

• Pipeline network expansion and new LNG terminal construction are ongoing, with completion targets through 2029.