Seoul: Korea Gas Corp. (KOGAS), South Korea's state-run gas utility, announced on Thursday that its net profit plummeted by 88.5 percent in 2025 compared to the previous year, primarily due to asset valuation losses.
According to Yonhap News Agency, KOGAS reported a decrease in net profit to 132.2 billion won (US$92.6 million) in 2025, down from 1.148 trillion won in the previous year. This significant decline was detailed in the company's regulatory filing.
KOGAS attributed the drop to 666.9 billion won in asset impairment losses associated with its overseas gas exploration projects in Australia and Mozambique. The company cited lower global oil prices and a more conservative valuation of assets as contributing factors to these losses.
The company's operating profit also saw a decrease, falling 30 percent from 3 trillion won to 2.1 trillion won over the same period. Additionally, sales experienced a decline of 6.9 percent, moving from 38.39 trillion won to 35.72 trillion won.
The weakened operating performance was further influenced by lower wholesale gas prices and increased subsidies for low-income households, both of which adversely affected earnings.