GS Co., Ltd. reported a significant increase in operating profit for the second quarter of 2026, driven by improved performance from its key subsidiaries.
On August 11, GS announced that its consolidated revenue for the second quarter reached 7.4131 trillion won, with an operating profit of 1.7174 trillion won and a net profit of 1.1320 trillion won. Compared to the same period last year, revenue increased by 24.9%, operating profit surged by 253.4%, and net profit rose by 1180.5%. Compared to the previous quarter, revenue grew by 8.3%, operating profit by 36.5%, and net profit by 36.9%.
For the first half of the year, GS's consolidated revenue totaled 14.2555 trillion won, with an operating profit of 2.9760 trillion won and a net profit of 1.9587 trillion won. This represents increases of 17.2% in revenue, 130.8% in operating profit, and 415.6% in net profit compared to the first half of last year.
The improvement in performance was led by GS Caltex and GS Energy, the company's core subsidiaries. GS Caltex reported second-quarter revenue of 16.6724 trillion won and an operating profit of 2.5507 trillion won, marking increases of 28% in revenue and 56% in operating profit from the previous quarter. The expansion of refining margins due to rising international oil prices and petroleum product prices, along with a temporary inventory effect, contributed to these results. Additionally, the lubricant business achieved record performance, boosting profitability amid global supply disruptions.
GS Energy also saw significant improvements, benefiting from strong resource development amid rising oil prices and improved equity method earnings from GS Caltex. The company reported second-quarter revenue of 2.4219 trillion won, a 105% increase year-over-year, and an operating profit of 1.5341 trillion won, a 347% surge.
Retail and hotel businesses also showed growth. GS Retail recorded second-quarter revenue of 3.1751 trillion won and an operating profit of 109.4 billion won, reflecting increases of 7% and 28%, respectively, compared to the same period last year. Growth in existing convenience stores and supermarkets, along with an increase in operating locations, supported these results. GS P&L also reported a 154% increase in operating profit to 29.4 billion won, driven by normal operations at the Westin Seoul Parnas and rising average daily rates (ADR).
In contrast, GS EPS reported an operating loss of 7.3 billion won in the second quarter due to a decline in power generation rates and the expiration of the individual fuel contract for LNG Unit 1. GS E&R's operating profit fell by 5% year-over-year to 29.5 billion won, impacted by a drop in wholesale electricity prices (SMP). GS Global's operating profit decreased by 41% to 11.7 billion won due to the sequential completion of offshore wind substructure projects and chemical plant operations.
A GS official stated, "The significant improvement in second-quarter consolidated results was driven by the expansion of refining margins at GS Caltex, the temporary inventory effect, and strong performance in the lubricant business." However, the official cautioned that uncertainties are expected in the third quarter due to oil price fluctuations related to Middle Eastern tensions and the fading of inventory effects, which will impact how flexibly the market can respond.
* This article has been translated by AI.
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