Korea Gas (036460) Q3 2025 earnings summary

Executive summary

• Revenue for the first nine months of 2025 was KRW 26,734,978 million, down from KRW 38,388,740 million in the same period of 2024, reflecting a significant decrease in sales volume and price adjustments.

• Net income attributable to owners was KRW 539,919 million, down from KRW 1,146,749 million in 2024, with basic EPS at KRW 6,153.

• City gas sales volume increased, offsetting some declines in power segment sales.

• Overseas projects showed mixed results, with some regions experiencing higher sales and others impacted by lower oil prices.

• The company maintained a strong credit rating (AA/AA-/AAA/A1) and stable capital structure, with government as the largest shareholder.

Financial highlights

• Revenue for 3Q 2025 was KRW 26,735.0 billion, down 5.9% year-over-year.

• Operating profit decreased by KRW 199.4 billion (down 10.9% YoY).

• Net income fell by KRW 276.3 billion, a 33.9% year-over-year decline.

• City gas revenue rose by 4.5% YoY, while power revenue dropped by 16.3%.

• Total assets at September 30, 2025, were KRW 52,949,554 million, down from KRW 57,669,637 million at 2024 year-end.

Outlook and guidance

• CAPEX is projected to rise, with a focus on domestic, overseas, and eco-friendly investments through 2029.

• Additional pipeline construction and LNG terminal expansions are planned to support future growth.

• The company expects continued seasonality, with higher sales and operating profit in winter due to heating demand.

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

• Management is monitoring geopolitical risks, commodity price volatility, and regulatory changes, especially in overseas operations.