GS Surpasses 14 Trillion Won in H1 Sales... Boost from Rising International Oil Prices (Update)

[Asia Economy Reporter Oh Hyung-gil] GS's consolidated sales in the first half of the year more than doubled compared to last year, driven by the rise in international oil prices and strong performance from its affiliates.

GS announced on the 10th that its sales and operating profit for the second quarter reached KRW 7.2626 trillion and KRW 1.5227 trillion, respectively, marking increases of 63.5% and 214.6% compared to the same period last year.

Accordingly, sales for the first half amounted to KRW 14.2498 trillion, with operating profit of KRW 2.7705 trillion, representing growth of 63.3% and 132.4% year-on-year, respectively.

By affiliate, GS Caltex recorded sales of KRW 16.0988 trillion and operating profit of KRW 2.1321 trillion in the second quarter. Sales surged due to higher product prices driven by rising oil prices and demand recovery, while operating profit significantly increased in the refining segment thanks to expanded inventory-related gains and improved refining margins from product price hikes. However, the petrochemical segment saw a decline in operating profit compared to the previous year.

GS Energy achieved sales of KRW 2.0964 trillion, up 182% year-on-year, driven by rising oil prices and increased equity-method gains. Operating profit also rose 292% to KRW 1.3612 trillion due to leverage effects from the sales increase.

GS Retail posted KRW 2.8169 trillion in sales, a 23% increase from the same period last year, supported by the performance of its home shopping division, an increase in store numbers, and higher occupancy rates at Parnas Hotel. GS EPS and GS E&R recorded sales of KRW 428.8 billion and KRW 579.3 billion, respectively.

A GS representative stated, "We recorded overall strong performance in the second quarter due to inventory-related gains and improved refining margins resulting from the rise in international oil prices," adding, "We are closely monitoring the impact as global economic volatility increases, including the recent downward trend in international oil prices in the second half of the year."