GS Achieves Record High Operating Profit of 2.6 Trillion Last Year... Caltex Returns to Profit with 1 Trillion After 2 Years (Comprehensive)

Refining Margin and Oil Price Rise Benefit
Caltex Refining Division Up

[Asia Economy Reporter Moon Chaeseok] GS recorded its highest-ever operating profit last year, driven by strong performance in its refining sector. This is attributed to the robust results of GS Caltex's refining division.

On the 10th, GS announced that its consolidated sales for last year reached KRW 20.1802 trillion, with an operating profit of KRW 2.5803 trillion. Compared to the previous year, sales increased by 30.66% and operating profit surged by 180.3%. Net profit turned positive at KRW 1.6003 trillion. GS's sales in the fourth quarter of last year were KRW 5.9411 trillion, with an operating profit of KRW 751.5 billion. Compared to the same period last year, sales rose by 62.6% and operating profit by 168.6%. Net profit also turned positive at KRW 286.1 billion compared to the previous year’s quarter.

The company stated that the strong performance of its energy subsidiaries significantly contributed to GS's record results last year. In the refining sector, improvements in refining margins due to recovering oil demand and increased inventory valuation gains from rising oil prices were key factors.

For GS Caltex, consolidated operating profit last year was KRW 2.0189 trillion, turning positive from a loss the previous year. During the same period, sales increased by 54.9% to KRW 34.5384 trillion, and net profit also turned positive at KRW 1.0517 trillion. This marked a return to profitability after two years and was the third highest performance ever, following 2016 (KRW 2.1404 trillion) and 2011 (KRW 2.02 trillion). Narrowing down to the fourth quarter, consolidated operating profit was KRW 609.2 billion, turning positive compared to the same period last year and increasing by 53.1% from the previous quarter. Sales and net profit for the quarter were KRW 11.2848 trillion and KRW 375 billion, respectively, up 119.8% and 309.7% year-on-year. GS Caltex’s refining division posted sales of KRW 8.9167 trillion and operating profit of KRW 587.4 billion in the fourth quarter, increases of 26.6% and 208% respectively from the previous quarter. The company explained that the rise in refining margins was largely due to the recovery in oil demand.

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