Gas Corporation's Q1 Cumulative Outstanding Receivables Near 12 Trillion Won... "Sincere Implementation of 14 Trillion Won Self-Help Measures"

Operating Profit Down 36% · Net Income Down 81%

Korea Gas Corporation's cumulative unpaid residential gas bills for the first quarter increased by 3 trillion KRW from 8.6 trillion KRW at the end of last year to 11.6 trillion KRW, approaching 12 trillion KRW.

On the 11th, the Gas Corporation released a press statement on its first-quarter 2023 performance, stating, "Due to the increase in interest expenses caused by the rise in unpaid bills, operating profit and net profit decreased by 36% and 81%, respectively."

A Gas Corporation official said, "Although unpaid residential bills increased by 3 trillion KRW compared to the end of last year, the consolidated debt ratio slightly improved compared to the end of last year due to a decrease in working capital and an increase in capital. Interest expenses surged by 232.3 billion KRW year-on-year due to increased short-term borrowings and rising interest rates caused by the sharp rise in unpaid bills. As a result, net profit sharply declined by 81% year-on-year to 139.4 billion KRW."

Sales revenue recorded 17.9 trillion KRW, up 28% year-on-year, influenced by higher selling prices due to exchange rate and oil price increases, despite a 7.8% decrease in sales volume compared to the same period last year.

Operating profit decreased by 341.8 billion KRW due to adjustments in fuel costs for power generation, and by using 56.8 billion KRW in dividend income from overseas projects linked to imports to reduce natural gas supply costs, operating profit fell 36% year-on-year to 588.4 billion KRW. The Gas Corporation explained that it strengthened self-help efforts to suppress rate hikes, such as excluding professional basketball team operating costs from supply costs.

However, operating profit from overseas projects increased by 123% year-on-year to 104.5 billion KRW. The Gas Corporation analyzed that the turnaround to profitability of the Prelude project in Australia contributed to the increase in operating profit.

Additionally, due to the stabilization of international liquefied natural gas prices and a decrease in working capital, the consolidated debt ratio at the end of the first quarter fell by 10 percentage points from 500% at the end of last year to 490%.

A Gas Corporation official stated, "We will do our best to alleviate the burden on the public and achieve financial structure improvement and management normalization by faithfully implementing self-help efforts worth 14 trillion KRW, including maximizing profits from overseas projects."