GS Holdings reports 560.6 billion won third-quarter net profit

Industry

Published: 09 Nov. 2022, 18:03

GS Holdings reports 560.6 billion won third-quarter net profit

A view of the GS Tower, headquarters of GS Holdings, located in yeoksam-dong, southern Seoul [GS HOLDINGS]

GS Holdings reported a net profit of 560.6 billion won ($411.2 million) in the third quarter, up 7.04 percent on year and beating analyst expectations despite concerns that falling refining margins will hurt the company.

The figure beat a 420.9-billion-won net profit estimate compiled on FnGuide.

GS Holdings reported revenue of 7.38 trillion won, beating analyst expectations of 6.8 trillion won in revenue.

Operating profit rose 112.6 percent on year to 1.36 trillion won.

“International crude prices and the refining margin fell, with operating profit growth smaller than expected,” said GS Holdings in a statement on Wednesday. “But we still reported on-year growth due to our subsidiaries doing well.”

Net profit of GS Caltex, a 50 percent owned oil refining subsidiary, jumped 198 percent on year to 399 billion won. Revenue was 16.4 trillion won, up 81 percent on year.

Despite an on-year increase, the company’s growth has been slowing. Compared to the previous quarter, its net profit fell 72.2 percent while revenue only rose 2.1 percent, with China increasing its export quota for refined oil products making an impact.

GS Caltex’s oil refining division logged sales of 13.4 trillion won in the third quarter, up 90.7 percent on year. Operating profit rose 193 percent on year to 558.8 billion won.

Its petrochemical division reported sales of 2.45 trillion won, up 57.6 percent on year. Operating profit jumped 189 percent to 93.9 billion won, thanks to high PX spread, or the difference between the price of PX products and that of naphtha, used to make the products.

Net profit of GS Energy, wholly owned by GS Holdings, rose 182 percent on year to 321.5 billion won. Revenue jumped 86 percent on year to 1.8 trillion won. The company said growing energy plant businesses helped.

GS Retail reported a net profit of 40.2 billion won, down 95 percent on year. Revenue rose 9.1 percent on year to 2.96 trillion won.

The company said sales rose due to it opening new GS Fresh Mall discount stores and more orders coming from its quick commerce deliveries. However, profits fell due to more labor costs needed to operate delivery services.

Shares of GS Holdings traded at 48,450 won on Wednesday, up 0.31 percent compared to the previous day.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]