GS Reports Operating Profit of 627.7 Billion KRW in Q3... Half of Last Year's Figure (Update)

GS's operating profit for the third quarter of this year sharply declined to half the level of last year.

On the 7th, GS announced that it recorded sales of 6.3974 trillion KRW and an operating profit of 627.7 billion KRW in the third quarter. These figures represent decreases of 1.09% and 49.02%, respectively, compared to last year. Net profit for the period was 38.7 billion KRW, down 94.47% from the same period last year.

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Accordingly, GS's cumulative sales and operating profit for the third quarter were 18.8901 trillion KRW and 2.4421 trillion KRW, respectively. The cumulative net profit was 790.1 billion KRW. These represent decreases of 2.7%, 19.2%, and 45.8%, respectively, compared to last year.

A GS official explained, "GS Caltex's performance was weak due to the decline in oil prices amid concerns over the slowdown in the Chinese and global economies, as well as the weak spreads of refining and chemical products. Additionally, our power generation subsidiaries also saw decreased performance compared to the same period last year as the downward trend in electricity purchase costs (SMP) continued."

He added, "The key factors that will determine future performance include various international political and macroeconomic variables such as the refining product spreads in the fourth quarter following the removal of uncertainty from the U.S. presidential election, geopolitical risks in the Middle East, and whether the Chinese and global economies will rebound."