SK Gas shares fell more than 10% in early trading after the company reported second-quarter results that significantly missed market expectations.
As of 9:54 a.m. on the Korea Exchange, SK Gas was trading at 200,500 won, down 23,000 won (10.29%) from the previous trading day.
The disappointing earnings report has dampened investor sentiment, leading to a concentrated sell-off in early trading.
On July 31, SK Gas announced that its consolidated revenue for the second quarter was 2.313 trillion won, with an operating loss of 439 billion won. While revenue increased by 23.0% compared to the same period last year, it decreased by 12.2% from the previous quarter.
The company reported an operating profit of 1.207 trillion won in the second quarter of last year and 2.277 trillion won in the first quarter of this year, both of which turned into losses.
Financial information provider FnGuide had projected an operating profit of 1.489 trillion won and a net profit of 1.167 trillion won, but the actual results fell significantly short of these estimates.
SK Gas is scheduled to hold an investor relations (IR) meeting on August 5 to discuss its second-quarter business performance with domestic institutional investors.
As the leading liquefied petroleum gas (LPG) provider in South Korea, SK Gas focuses on the import, storage, and sale of LPG, as well as global trading.
The company operates its gas chemical subsidiary, SK Advanced, based on its LPG business and plans to expand its portfolio with the commercial operation of the Korea Energy Terminal LNG terminal in November 2024 and the world's first LNG-LPG dual power plant, Ulsan GPS, in December 2024.
Currently, approximately 90% of the company's consolidated revenue comes from its LPG business, but SK Gas aims to gradually increase the share of new businesses, including LNG and power generation.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.