Korea Gas Corporation goes all out to enhance shareholder value through portfolio reorganization

Korea Gas Corporation is making every effort to reorganize its business portfolio and enhance shareholder value, the company14said. This is because stable natural gas supplies and a recovery in its financial structure are needed amid an energy crisis originating in the Middle East.

The company explained that its financial structure had deteriorated due to the global supply chain crisis triggered by the Russia-Ukraine war and the Iran war, as well as the accumulation of accounts receivable.

The company said it is pursuing four tasks: restoring financial soundness, expanding future growth engines, strengthening the competitiveness of its core business, and enhancing shareholder returns and communication with shareholders.

2022The year-end debt ratio was 500%, but through efforts to improve management efficiency and maximize profitability, it was reduced to 397% at the end of last year.

The company explained that, under its rate policy aimed at stabilizing the people’s livelihoods and economy, receivables 2024surged to as much as at year-end 14but that it is curbing the increase in receivables by lowering LNG procurement costs through price renegotiations for existing contracts and less expensive new contracts, while reducing expenses.

The company said that over the past 3years, it had recovered approximately 3trillion won in investment costs from its overseas resource businesses.

In Australia, it recovered 2LNG projects, 1trillion 3,000hundred million won, and plans to recover an additional approximately 2030trillion won or more from its overseas businesses by 5.

The company said it is disposing of noncore assets with low profitability and restructuring its business portfolio around profitability and strategic value.