GS Corp. (078930) posted first-quarter operating profit exceeding 1 trillion won, driven by rising international oil prices amid Middle East geopolitical tensions.
GS said in a regulatory filing that consolidated first-quarter operating profit reached 1.2586 trillion won, up 57% from 803.3 billion won a year earlier. Revenue rose 10% to 6.8424 trillion won, while net profit jumped 184% to 826.7 billion won.
Among its affiliates, GS Caltex delivered the most striking performance. First-quarter revenue rose 17% year-on-year to 13.0347 trillion won, while operating profit soared 1,310% to 1.6367 trillion won from 116.1 billion won a year earlier. The surge came as the Middle East situation pushed up crude oil and global petroleum product prices, translating into higher revenue and inventory valuation gains. By segment, refining operating profit jumped 1,882% year-on-year to 1.5285 trillion won from 77.1 billion won, while the petrochemical business swung to a profit of 35 billion won after consecutive losses. The lubricants segment posted operating profit of 73.3 billion won, down 20% year-on-year, as surging oil prices raised cost burdens and narrowed base oil spreads.
GS Energy reported revenue of 1.9911 trillion won and operating profit of 1.0585 trillion won, up 20% and 64% year-on-year respectively, lifted by higher equity-method valuation gains from subsidiary GS Caltex.
"The 2026 consolidated results increased from the previous year due to a temporary inventory effect from the Middle East situation," GS said. However, the company explained that refining margin profits excluding the inventory effect fell quarter-on-quarter due to the impact of the oil price ceiling, while profitability in the petrochemical and lubricants segments also declined overall as product prices failed to keep pace with rising crude costs. "Oil price volatility from the Middle East situation is expected to persist in the second quarter," GS said. "How flexibly the refining segment responds to such uncertainty will be the key factor determining the direction of earnings."
Meanwhile, GS Global (001250) posted revenue of 1.0991 trillion won, up 8% year-on-year on higher steel sales in its trading segment, but operating profit fell 19% to 12.9 billion won due to its transition to the offshore wind substructure business and the wind-down of its chemical plant business.
GS Retail (007070) saw operating profit rise 39% to 58.3 billion won as its convenience store, supermarket, and home shopping divisions all improved under a profitability-focused management stance. GS P&L posted revenue of 130.4 billion won and operating profit of 24.2 billion won, up 38% and 59% respectively, supported by the normalized operation of The Westin Josun Seoul Parnas and higher average daily rates (ADR) at its Grand and Nine Tree hotels.
