The world’s second-largest buyer of LNG, Kogas said its sales volume dropped 2.8 percent in the first half of this year as compared to the corresponding period a year ago.
South Korea’s Kogas said in its first-half results report it sold 16.75 million mt of LNG in January-June, compared to 17.23 million mt last year.
Sales into the power sector were at 7 million mt, down 8.2 percent as South Korea used more coal and nuclear for power generation.
City gas sales increased by 1.5 percent to 9.75 million mt as heating demand rose due to a cold snap.
Kogas imported 16.1 million mt of LNG over January-June, down 2.7 percent on year.
Most of the LNG supply was imported under 16 long-term contracts and 1 mid-term contract from 10 countries around the world.
Kogas currently operates 69 storage tanks in 4 LNG receiving terminals.
The company imports approximately 96% of Korea’s LNG demand via the four LNG terminals, namely the Incheon, Pyeongtaek, Tongyeong, and Samcheok.
Revenue declines
Kogas reported a 25.6% year-on-year decrease in its first-half revenue to 11.3 trillion won due to lower prices and sales volume.
Over January-June, the company’s net profit dropped 25.1% to 405 billion won while operating profit rose 2.1% year on year to 888 billion won, Kogas said.
The Korean company also said its debt decreased to 30.65 trillion won at the end of June as compared to 32.33 trillion won at the end of 2015.
1 South Korean Won equals 0.00091 US Dollar
LNG World News Staff