GS Holdings beats expectations with a strong second quarter
GS Holdings reported a 205.8 billion won ($179.6 million) net profit in the second quarter, up 2,061 percent.
Analysts had forecast 177 billion won, according to FnGuide.
Quarterly revenue stood at 4.44 trillion won, up 21.1 percent on year, while operating profit soared 208.7 percent to 485.5 billion won.
Analysts expectations for revenue were 4.12 trillion won and for operating profit 463 billion won.
First half revenue stood at 8.73 trillion won, up 11 percent on year, while operating profit jumped 614.9 percent to 1.2 trillion won. Net profit was 790.4 billion won, compared to a 285.7-billion-won losses during the first half of 2020.
The strong performance of GS Caltex contributed to the results. GS Holdings owns 50 percent of the oil refiner.
GS Caltex reported 223.7 billion won in net profit in the second quarter, a turnaround from the same quarter last year when it was in the red, while its revenue rose 67.1 percent to 7.7 trillion won. Quarterly operating profit was 379.2 billion won.
By sector, the oil refining business generated 6.04 trillion won of revenue, up 73.8 percent on year, and 134.3 billion won in operating profit. Petrochemicals business revenue totaled 1.3 trillion, up 45.1 percent, while lubricant business revenue grew 53.1 percent on year to 405.8 billion won in the second quarter.
Compared to the first quarter, GS Caltex’s net profit was down 29.9 percent while operating profit declined by 40.1 percent.
“GS Caltex’s performance grew on year as it benefited from the satisfactory profit margin spread of petrochemicals and lubricants, but it decreased on-quarter due to the decline in inventory sales,” GS said in Monday’s report.
GS EPS generated 4.8 billion won in net profit, down 84.6 percent on quarter. Its operating profit declined 89.9 percent on quarter to 3.6 billion won.
GS Retail, operator of GS25 convenience stores, reported 25.4 billion won in net profit, down 24.5 percent on year. Its revenue grew 3.4 percent to 2.29 trillion won, while operating profit slid 27.7 percent to 42.8 billion won.
GS Home Shopping’s operating profit was down 28.2 percent on year to 29.8 billion won.
BY SARAH CHEA [firstname.lastname@example.org]
with the Korea JoongAng Daily
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