GS Q1 Operating Profit Down 21.3% YoY... "Weak Refining Margins and Chemical Product Spreads"

On May 9, GS announced that on a consolidated basis for the first quarter of this year, it recorded sales of 6.2388 trillion KRW, operating profit of 800.2 billion KRW, and net profit of 291.5 billion KRW.

This represents a decrease of 0.8% in sales compared to 6.289 trillion KRW in the same period last year, a decrease of 21.3% in operating profit compared to 1.0163 trillion KRW, and a decrease of 38.8% in net profit compared to 476 billion KRW.

Compared to the fourth quarter of last year, sales decreased by 2.6% from 6.4074 trillion KRW, operating profit increased by 29.5% from 618.1 billion KRW, and net profit increased by 297.1% from 73.4 billion KRW.

A GS representative explained, "The consolidated results for the first quarter of this year were generally sluggish due to weak refining margins and chemical product spreads, which were affected by uncertainty in U.S. trade policy and sluggish domestic demand in China. In addition, the system marginal price (SMP) for electricity fell by about 11% year-on-year. While the temporary rise in oil prices caused by Russian ship sanctions at the beginning of the year had a somewhat positive effect on inventory valuation, this was offset by weak refining and petrochemical product margins due to concerns over sluggish demand stemming from tariff uncertainties."

The representative added, "In the case of SMP, it has been stabilizing downward since the second half of last year, so power generators' electricity sales margins were generally weaker compared to the previous year. In the first half of this year, the contraction in demand for chemical products in China due to uncertainty about U.S. tariff policy is putting pressure on the refining and chemical sectors. The resolution of uncertainty regarding U.S. tariff policy, and whether this leads to a recovery in demand in China and globally, will be key factors for performance in the second half of the year."

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