South Korean LNG buying giant Kogas reported a 10.7 percent decline in its operating profit in the first half of this year.
The state-owned gas utility’s operating profit dropped to 793 billion won ($693m) in the period under review from 888 billion won in the first half of 2016.
Kogas’ revenue rose 3.9 percent to 11.7 trillion won despite a 0.6 percent decrease in natural gas sales to 16.7 million mt. Revenue rose on the back of higher oil and gas prices, according to the company’s first-half report released this week.
The company’s net income also decreased to 241.4 billion won from 405 billion won in the first half last year.
Rating agency Moody’s said in a note on Thursday that Kogas’ weaker operating profit in the first half was in line with expectations and would not have an immediate impact on the company’s ratings.
“In addition, Kogas lowered its debt in 1H 2017, thereby increasing its financial headroom against a likely rise in capital expenditures in 2018-19 to enhance its domestic gas utility capacity and develop gas fields overseas,” the agency said.
Kogas said its debt fell to 22.9 trillion won as of June this year from 24.2 trillion won at the end of 2016.
The company currently operates 69 storage tanks in 4 LNG receiving terminals in South Korea. It imports about 96 percent of Korea’s demand for LNG.
LNG World News Staff