GS Caltex 'Earnings Shock'... 1Q Operating Loss of 1.0318 Trillion Won Recorded

[Asia Economy Reporter Park Soyeon] GS Caltex recorded its worst-ever performance with an operating loss in the 1 trillion won range in the first quarter of this year.

GS announced on the 11th that its subsidiary GS Caltex posted a consolidated operating loss of 1.0318 trillion won and sales of 7.0715 trillion won in the first quarter. The net loss for the period was 1.0153 trillion won.

Operating profit and net profit, which were positive in the same period last year and the previous quarter, all turned to losses. Sales decreased by 11.1% compared to the same period last year and by 18.7% compared to the previous quarter.

The main cause of the sharp decline in performance was the surge in inventory-related losses due to the impact of the novel coronavirus disease (COVID-19) and the plunge in international oil prices.

The refining sector posted an operating loss of 1.1093 trillion won. Sales in the refining sector were 5.5093 trillion won, down 21.2% from the previous quarter.

In the petrochemical sector, operating profit was 20.2 billion won, down 31.7% from the previous quarter, and sales were 1.2444 trillion won, down 11.2%.

In the lubricants sector, operating profit increased by 77.2% to 67.2 billion won due to a rise in product spreads, and sales increased by 6.2% to 317.8 billion won.

However, the refining sector alone recorded a loss in the 1.1 trillion won range, and the profits from the petrochemical and lubricants sectors could not offset this loss.

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