Korean public gas utility's earnings jump 90 percent, rebounding from loss

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Korean public gas utility's earnings jump 90 percent, rebounding from loss

Published: 12 Nov. 2024, 18:17

Korea Gas Corp.'s sign in its office building [YONHAP]

Korea's state-run Korea Gas Corp. (Kogas) said Tuesday it has swung to profit in the third quarter, following the 6.8 percent hike in utility bills that started in August for households.

Net profit came to 155.2 billion won ($110.8 million) in the July-September period, compared with a loss of 162.8 billion won tallied a year earlier, the company said in a regulatory filing.

Operating profit for the third quarter was 439.7 billion won, up 90.9 percent from a year ago. Sales rose 2.8 percent to 8.1 trillion won.

“In the third quarter, operating profit improved, as one-off costs, which weighed down performance in 2023, were resolved,” the company said in a statement.

However, Kogas noted that utility bills still hover below production costs, adding that the amount of uncollected payments, referring to expenditures used to purchase gas that have not been recovered through bills, continues to rise.

The company has been facing financial difficulties due to its inability to raise sufficient utility costs to address fluctuations in the global energy market in the wake of Ukraine's war against Russia.

Shares of Kogas closed at 40,050 won on the main bourse on Tuesday, up 0.12 percent from the previous session. The third quarter report was announced during market hours.

Yonhap