GS's operating profit in the fourth quarter of last year recorded 550.1 billion KRW, a 25.9% decrease compared to the previous year. Sales and profits were somewhat sluggish as demand for petroleum and chemical products weakened due to the delayed global economic recovery.
GS announced on the 11th that in the fourth quarter of last year, it recorded sales of 6.3432 trillion KRW and operating profit of 550.1 billion KRW. These figures represent decreases of 2.3% and 25.9%, respectively, compared to the previous year. Net profit for the period was 52.7 billion KRW, down 56.6% from the same period last year.
On an annual basis, sales amounted to 25.2333 trillion KRW and operating profit to 2.9922 trillion KRW, down 2.9% and 19.6%, respectively, compared to the previous year. Net profit was 842.8 billion KRW, a 46.6% decrease year-on-year.
By major affiliates, GS Caltex's sales in the fourth quarter of last year decreased by 10% to 11.4628 trillion KRW, while operating profit increased by 45% to 276.3 billion KRW. Net profit recorded 16.2 billion KRW, down 92% due to factors such as foreign exchange losses. Despite a decline in profits from petrochemical products, operating profit improved as refining margins recovered.
GS Energy's sales in the fourth quarter were 1.4105 trillion KRW, and operating profit was 425 billion KRW, down 21% and 32%, respectively, from the previous year due to falling oil prices and reduced refining margins. Net profit declined 68% to 62.6 billion KRW. GS EPS recorded sales of 443.4 billion KRW, a 9% increase, while operating profit and net profit decreased by 49% and 51% year-on-year to 35 billion KRW and 25.1 billion KRW, respectively.
GS E&R posted sales of 346.2 billion KRW and operating profit of 32.3 billion KRW in the fourth quarter, down 22% and 5%, respectively, from the previous year. GS Retail, which operates convenience stores and supermarkets, recorded a 6% increase in sales to 2.9622 trillion KRW in the fourth quarter, while operating profit fell 49% to 27.7 billion KRW.
A GS representative assessed, "Last year's consolidated results were sluggish compared to the previous year due to weak demand for petroleum and chemical products amid delayed recovery in China and the global economy." They added, "Oil prices continued to decline due to eased tensions in the Middle East, a strong dollar, and slowing demand in China, while energy supply chain uncertainties eased, leading refining margins to stabilize downward amid weak global demand." They further explained, "SMP also gradually declined with the weakening oil prices, resulting in poorer performance for power generation companies compared to the previous year." Additionally, they noted, "This year, the key to performance will be whether the Chinese and global economies rebound following the resolution of geopolitical risks in the Middle East."
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