SK Gas Reports Q2 Operating Profit of 46.9 Billion KRW, Down 30% Year-on-Year

Sales increased by 10.5% to 1,651.4 billion KRW

SK Gas, an LPG import and sales company, announced on the 2nd that it recorded sales of 1.6514 trillion KRW and an operating profit of 46.9 billion KRW in the second quarter of this year. Compared to the same period last year, sales increased by 10.5%, while operating profit decreased by 29.7%. The operating profit margin was 2.8%.

Regarding the second-quarter performance, SK Gas explained, "Earnings declined due to the stabilization effects of falling city gas and LPG prices, and the prolonged freeze on agency sales prices also had an impact." It added, "Industrial sales volume decreased by 40,000 tons compared to the same period last year."

SK Gas stated, "However, petrochemical sales and LPG trading continued to show solid performance," and "Domestic sales volume increased by 40,000 tons year-on-year due to new petrochemical sales."

An LNG vessel arriving at the Korea Energy Terminal (KET), jointly constructed by SK Gas and Korea National Oil Corporation at Ulsan North Port. Photo by SK Gas

Regarding LPG price trends, SK Gas said, "Despite a decrease in demand entering the summer season, the decline in LPG prices has been minimal," and "Prices have been moving sideways at similar levels for a long time."

SK Gas is promoting its LNG business. It has started trial operations at the Ulsan North Port LNG terminal and aims to begin commercial operations within the second half of this year. It is also conducting trial operations of the LNG and LPG combined cycle power plant (UGPS). Depending on market conditions, it can flexibly select the gas with price competitiveness between LNG and LPG as fuel.