Korea Gas (036460) Q2 2026 earnings summary

Executive summary

• Operating profit rose 28.0% year-over-year in 1H 2026, driven by lower LNG import prices and improved subsidiary performance, notably Mozambique.

• Net income surged 96.1% year-over-year, supported by higher equity-method gains and increased profitability from overseas projects.

• Revenue for the first half of 2026 was KRW 193,102 billion, with operating income of KRW 1,585.3 billion and net income of KRW 887.1 billion, reflecting significant profitability growth.

• The company maintained a 100% market share as Korea's sole wholesale natural gas supplier, excluding direct imports.

• Major investments continued in LNG infrastructure, hydrogen, and renewable energy projects, focusing on expanding the LNG value chain and hydrogen infrastructure.

Financial highlights

• 1H 2026 revenue: KRW 193,102 billion, down 5.2% year-over-year.

• Operating profit: KRW 1,585.3 billion, up 28.0% year-over-year.

• Net income: KRW 887.1 billion, up 96.1% year-over-year.

• Total assets at June 30, 2026: KRW 52,346,044 million; equity: KRW 11,756,243 million; liabilities: KRW 40,589,801 million.

• Operating cash flow for the half-year was KRW 4,239,428 million, with cash and cash equivalents at KRW 1,507,101 million.

Outlook and guidance

• Ongoing efforts to stabilize and increase LNG production at overseas projects, especially Canada LNG.

• Planned domestic and overseas CAPEX of KRW 18,129 billion for 2026, focusing on eco-friendly and new energy investments.

• Continued strong demand for natural gas expected, with stable long-term supply contracts and expansion of LNG and hydrogen businesses.

• Ongoing investments in infrastructure and new energy projects to support future growth, emphasizing energy transition and ESG initiatives.