SK Gas plans to buy back and retire a total of 90 billion won in its own shares over the next three years.
The company announced on October 13 that its board of directors approved a medium-term shareholder return plan, which includes purchasing and retiring 30 billion won worth of shares annually from 2026 to 2028. This initiative is an addition to its existing shareholder return policy, aimed at sharing the company's achievements with shareholders and enhancing corporate value.
The first tranche of 30 billion won will begin on October 14 through a trust agreement, with all acquired shares set to be retired after the buyback is completed. The remaining 60 billion won will be purchased and retired in 30 billion won increments in 2027 and 2028.
This shareholder return plan is based on SK Gas's achievements in diversifying its business portfolio and expanding its financial capacity. Over the past decade, the company has strengthened its competitiveness in the LPG sector and expanded into LNG and power generation, creating synergies between its businesses and enhancing its profitability and financial strength.
Instead of a one-time special dividend, SK Gas opted for a three-year share buyback and retirement strategy. This approach aims to increase per-share value through consistent buybacks and retirements, while continuously sharing future growth and achievements with shareholders.
An SK Gas representative stated, "This decision reflects our commitment to sharing the results we have generated with our shareholders and demonstrates our confidence in future growth and enhancing corporate value. We will actively invest in high-growth new businesses based on stable cash flow from existing operations, while maintaining a balanced capital allocation by expanding shareholder returns if investment opportunities are insufficient."
On October 14, SK Gas will present its growth strategy, capital allocation direction, and long-term corporate value enhancement plans during its Investor Day.
Meanwhile, under its shareholder return policy for 2024 to 2026, SK Gas plans to distribute more than 25% of its annual consolidated net income attributable to shareholders as dividends and will consider additional shareholder returns if it exceeds its long-term return on equity (ROE) target of 12%.
* This article has been translated by AI.
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