[Click eStock] "Korea Gas Corporation, Continued Strong Performance Expected in Overseas Business"

Shinyoung Securities Report

[Asia Economy Reporter Minji Lee] Shin Young Securities maintained its buy rating and target price of 60,000 KRW for Korea Gas Corporation on the 16th, expecting continued strong performance in overseas business operations.

In the second quarter, Korea Gas Corporation recorded sales of 8.8 trillion KRW, an 82.9% increase compared to the previous year. Operating profit surged 433% to 289.4 billion KRW. Sales volume of natural gas increased by 4.7% year-on-year to 7.73 million tons. The sharp rise in operating profit was influenced by strong overseas business performance. Net profit turned positive due to improved equity-method gains from Qatar KORAS and Uzbekistan.

The sustained strong performance in overseas business is a positive factor, driven by continued strength in energy prices such as natural gas and crude oil. In particular, Australia Prelude turned profitable and began generating significant earnings. Although scheduled maintenance is planned for September to October, it is highly likely to be postponed until July next year, increasing the possibility of continued production. Researcher Deokmin Kwon of Shin Young Securities explained, “Among overseas businesses, Australia GLNG, which has the largest sales scale, has a breakeven point of 57.7 dollars based on net profit, providing a margin even considering future oil price stabilization.”

While the strong dollar may negatively impact future dividends, external factors such as rising interest rates and strong energy prices are all favorable for the company’s stock price. Researcher Kwon stated, “Since it must be measured at the end of the period, we need to observe for some time,” and diagnosed, “There will not be a sharp decline in oil and natural gas prices for the time being.”