South Korean Kogas reported a steep drop in net income and operating profit for the first nine months of 2016.
The world’s second largest LNG importer reported a net income of 107 billion won (Approx: US$92.2 million), plummeting 64.3 percent from 300 billion won in the corresponding period of 2015, according to the company’s report.
Kogas attributed the drop in part to the increased interest expenses coming from the startup of the Santos-led Gladstone LNG project on Curtis Island in Queensland, Australia, in which the South Korean utility has a 15 percent stake.
The rise in operating losses from some overseas projects pushed the company’s operating profit down 3.6 percent from 724 billion won in 2015 to 698 billion won in the first nine months of 2016.
The revenue was impacted by lower sales volumes as well as the price drop as Kogas reported a 23.7 percent decrease from 19.6 trillion won in 2015 to 14.9 trillion won in the period currently under review. Sales edged down 0.3 percent year-on-year to 23.1 million mt.
In the January-September period Kogas imported 21.9 million mt of liquefied natural gas.
Kogas’ cash flow of 5.6 trillion won for the first nine months has already surpassed cash flow generated during the whole year of 2015.
1 KRW = 0.000862117 USD
LNG World News Staff