GS Holdings reports 936.3 billion won net profit, up 355%

GS Holdings reported a net profit of 936.3 billion won ($713.5 million) in the second quarter, jumping 355 percent on year, helped by its oil refining subsidiary business.

GS Holdings reported a net profit of 936.3 billion won ($713.5 million) in the second quarter, jumping 355 percent on year, helped by its oil refining subsidiary business.

The company beat analyst expectations of a 326-billion-won net profit compiled on FnGuide.

Revenue was 7.26 trillion won, up 63.6 percent on year and also beating expectations of 6.06 trillion won.

Net profit of GS Caltex, a 50 percent owned oil refining subsidiary, surged 542 percent on year to 1.4 trillion won. Revenue was 16.1 trillion won, up 108 percent on year.

“We reported overall strong second quarter results, backed by rising international crude prices increasing inventory valuation and pulling up refining margins,” GS Holdings said in a release Wednesday. “But there are uncertainties in the second half of the year, such as international crude prices falling, and we are keeping an eye out for the risks.”

Of GS Caltex’s three divisions — oil refining, petrochemicals and lubricants — oil refining business led the growth, with sales rising 119 percent on year to 13.2 trillion won. Operating profit surged 1,395 percent to 2 trillion won.

The company said prices of gasoline, diesel and jet fuel sharply rose due to geopolitical uncertainties, such as the Russian invasion of Ukraine, creating supply shortages.

At GS Energy, wholly owned by GS Holdings, net profit jumped 617 percent to 819.3 billion won, also due to high crude prices. Revenue rose 182 percent to 2.1 trillion won.

GS Retail reported net profit of 45.1 billion won, jumping 78 percent on year. Its sales rose 23 percent on year to 2.8 trillion won.

The company is 57.9 percent owned by GS Holdings, and operates brands such as convenience store GS25 and discount mart GS Fresh Mall.

Sales at its convenience store division rose 8 percent on year to 1.95 trillion won. Operating profit rose 1 percent on year to 66.9 billion won.

Discount mart division sales rose 5.3 percent to 297.4 billion won. But operating profit dropped 90.3 percent to 300 million won due to huge costs related to delivery services, which started in May.

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]