GS 1Q Operating Profit 9.5 Billion KRW... 98.2% Decrease YoY

[Asia Economy Reporter Park So-yeon] GS announced on the 11th that its consolidated operating profit for the first quarter was tentatively estimated at 9.5 billion KRW, a 98.2% decrease compared to the same period last year.

Sales decreased by 5.0% year-on-year to 4.1961 trillion KRW, and net loss turned to 295.2 billion KRW, shifting from a net profit of 205.8 billion KRW in the first quarter of last year.

GS's first-quarter performance was dragged down by GS Caltex. GS Caltex recorded an operating loss of 1.0318 trillion KRW in the first quarter, marking an 'earnings shock.'

GS Caltex's first-quarter operating loss was around 570 billion KRW previously, but the deficit nearly doubled.

GS Caltex posted an operating profit of 329.5 billion KRW in the first quarter of last year but turned to a loss this year.

GS explained that GS Caltex's poor performance was due to a sharp increase in inventory-related losses caused by the impact of COVID-19 and the plunge in international oil prices.

Most of GS Caltex's losses came from the refining sector.

While the petrochemical sector recorded an operating profit of 20.2 billion KRW, the refining sector suffered an operating loss of 1.1093 trillion KRW.

A GS official stated, "It is positive that the performance of distribution and power subsidiaries remains solid, but the volatility of macroeconomic indicators has significantly increased."

This content was produced with the assistance of AI translation services.