Two Consecutive Years of Profit... Korea National Oil Corporation Reports 178.8 Billion KRW Net Income Last Year

Profit Realization Despite Worsening Market Conditions Due to Oil Price Drop and Interest Rate Hikes

Financial Structure Improvement with 1.7577 Trillion KRW Debt Reduction Over 3 Years

Korea National Oil Corporation (President Kim Dong-seop) achieved a net profit of 178.8 billion KRW last year, marking two consecutive years of profitability.

On the 4th, the Oil Corporation announced that it recorded sales of 3.2671 trillion KRW and an operating profit of 846.5 billion KRW last year based on consolidated financial statements.

After successfully turning a profit for the first time in 12 years in 2022, the corporation continued its profitable management trend by recording net profit last year as well.

Despite adverse external business conditions such as international oil and natural gas prices falling by 17% (based on Brent crude) and 61% respectively compared to the previous year, and persistent high inflation and high interest rates worldwide, the net profit was achieved through efficient operation of core assets, reduction of production costs, and minimization of expenses.

The Oil Corporation operated the ‘Financial Soundness Committee’ and the ‘Management Performance Maximization Task Force’ in accordance with the CEO’s management principle of early identification and proactive response to factors that could affect profits and losses.

Through these efforts, they implemented a contingency plan for bold cost reduction, increased profits from oil development and reserve assets, improved management efficiency through the sale of non-core assets and digital transformation, and worked to achieve financial performance by optimizing fund management and reducing borrowings.

In the oil development sector, a strategy was pursued to maximize profits while lowering risks and costs by exploring and developing nearby areas linked to existing production blocks.

Last year, Dana Ltd., a subsidiary of the Oil Corporation in the UK, completed the development of Tolmount East in connection with Tolmount Main and started early production. They also succeeded in discovering gas through exploratory drilling in the nearby Earn structure. Additionally, in the US Eagle Ford project, they secured an additional 10 million barrels of reserves, increasing asset value.

Furthermore, by activating the contingency plan in response to the decline in oil prices, they strengthened budget control and reduced operating expenses, carrying out company-wide efforts to improve profits.

The Oil Corporation reduced borrowings by 368.8 billion KRW in 2023 through global fund management optimization and active investment recovery. This marks three consecutive years of borrowing reduction, with a cumulative reduction of 1.7577 trillion KRW over this period.

By reducing borrowings, the Oil Corporation expects not only to improve its financial structure but also to save 91.5 billion KRW annually in interest expenses and improve net profit in the future amid high interest rate conditions.

Kim Dong-seop, President of the Oil Corporation, stated, “Despite difficult external conditions, we achieved net profit for two consecutive years through the efforts and work innovation of all members,” and added, “With the foundation for a new leap established, we will become a public enterprise trusted by the people by continuously strengthening business capabilities and improving management efficiency to enhance financial soundness.”

Korea National Oil Corporation.

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