[2021 Performance Summary] KOSPI Transportation and Warehouse Industry Operating Profit Soars 569%... Electric and Gas Industry Turns to Deficit

Rising Freight Costs Boost Transport Equipment Industry
Electricity and Gas Sector Deficit... Korea Electric Power Corporation Operating Loss of 5.8601 Trillion Won

[Asia Economy Reporter Minji Lee] Last year, the earnings of KOSPI-listed companies increased significantly, with the transportation and warehousing industry showing remarkable growth. In contrast, the electricity and gas industry alone turned to a loss, showing a sluggish performance.

According to the 'FY 2021 Financial Results' of December fiscal year-end corporations on the Korea Exchange's KOSPI market announced on the 4th, the operating profit of KOSPI December fiscal year-end listed companies (595 consolidated companies) was 183.9668 trillion KRW, a 74% increase compared to the previous year. Net profit increased by 160% to 156.5693 trillion KRW, and sales rose by 19% to 2,299.1181 trillion KRW.

By industry, the transportation and warehousing sector (22 companies) had the highest profit growth rate. Last year, it earned an operating profit of 10.7423 trillion KRW, increasing by 569.57% compared to the previous year. The transportation and warehousing industry is estimated to have benefited from increased shipping freight rates due to the rise in cargo volume, significantly improving the performance of shipping stocks. Additionally, major airlines (FCF) achieved record-high results by greatly increasing profits from cargo freight despite normal passenger transport activities being impossible due to COVID-19. Following this, the chemical industry (83 companies) and steel and metal industry (31 companies) also significantly increased profits, recording 27.3887 trillion KRW and 15.9001 trillion KRW respectively, up 351% and 268%.

Among the top 20 companies with the highest operating profit growth rates, stocks included in the above industries were also prominent. Looking at major stocks, Highsteel recorded a profit of 14.6 billion KRW, growing 4,936% compared to the previous year, and SeAH Special Steel posted a profit of 35.4 billion KRW, increasing by 4,040%. Following these were Hyundai Steel (3,251%), SeAH Holdings (2,257%), Korean Air (1,221%), Hyosung Advanced Materials (1,178%), and Korea Steel (902%).

On the other hand, the electricity and gas industry was the only sector to turn to a loss among all industries, with a significant contraction in profit size. The electricity and gas industry (9 companies) recorded an operating loss of 4.4247 trillion KRW. It is estimated that Korea Electric Power Corporation's (KEPCO) turnaround to a loss was a major factor. Last year, KEPCO recorded an operating loss of 5.8601 trillion KRW, significantly reducing profit compared to 4.0862 trillion KRW in 2020. The construction industry also saw profits decrease by about 4% compared to the previous year, recording 3.2597 trillion KRW. Other industries showed increases in both sales and operating profits.