GS Group posts 1.3 trillion won in Q3 operating profit; lubricants shine, petrochemicals post a loss

[Financial News] GS Group's operating profit rose 46.4% year on year to 1.2748 trillion won in the third quarter of this year. Earnings improved from last year as high refining margins were maintained, but fell 25.8% from the previous quarter due to inventory effects stemming from declines in oil prices and exchange rates.
GS Group said on the 5th that it posted revenue of 7.2706 trillion won, operating profit of 1.2748 trillion won and net income of 680.4 billion won on a consolidated basis in the third quarter.
Revenue rose 11.2% and net income 66.9% year on year. By contrast, compared with the previous quarter, revenue fell 1.9% and net income declined 39.9%.
Cumulative revenue for the first three quarters of this year was 21.526 trillion won, up 15.1% year on year. Cumulative operating profit rose 96.8% to 4.2507 trillion won, while net income increased 235.1% to 2.6391 trillion won.
By business segment, performance improved in lubricants and power generation, while the refining segment maintained high refining margins. The lubricants segment posted its best-ever results amid global supply disruptions. Operating profit in the power generation segment also increased as it entered its seasonal peak period and the system marginal price (SMP) rose.
By contrast, the petrochemical segment continued to post a loss for a second consecutive quarter, as it was unable to fully pass on the increase in the price of naphtha, its feedstock, to product prices.
A GS Group official said, "Uncertainties, including oil price volatility stemming from the situation in the Middle East and rising crude oil transportation costs, will continue into the fourth quarter of this year."  


[email protected] Kim Mi-hee Reporter