Korea Gas Corporation (KOGAS), which holds receivables exceeding 13 trillion won, is making progress in improving its financial structure through intensive self-rescue efforts. The company is also accelerating its expansion into new businesses to secure future growth engines.
According to KOGAS on Monday, its debt-to-equity ratio, which reached 500% at the end of 2022, was reduced to 397% at the end of last year. Although KOGAS's receivables approached 14 trillion won under the government's policy of freezing residential gas rates, the company lowered its cost burden through price renegotiations of existing liquefied natural gas (LNG) contracts and cheaper new contracts, reducing receivables to around 13.37 trillion won.
The company also recovered about 3 trillion won in investment costs from overseas resource projects over the past three years. "We recovered 1.3 trillion won from two LNG projects in Australia," a KOGAS official said. "We will recover more than 5 trillion won additionally by 2030 to enhance financial soundness."
KOGAS is also devoting efforts to new business investments to strengthen its medium- to long-term growth momentum. It completed the final investment decision on the Coral II project in Mozambique, which targets production in 2028, and plans to finalize investments in the LNG Canada Phase 2 project and the Rovuma project in Mozambique by the end of this year. In line with the government's energy transition policy, the company is continuously expanding its hydrogen business, including hydrogen production bases and refueling stations.
To respond to geopolitical risks, KOGAS is also actively pursuing diversification of its supply sources. The company plans to lower its dependence on natural gas imports from the Middle East from 45% in 2022 to around 18% this year, while steadily increasing the share of new LNG imports from the United States. In addition, KOGAS is working to enhance shareholder value, including paying dividends for two consecutive years.
"Despite numerous difficulties, we have achieved stable supply and demand without wavering, and have also established a foundation for sustainable growth by identifying new growth engines," KOGAS CEO Choi Yeon-hye said. "We will develop into a company trusted by the public, consumers, and shareholders alike."
