As the global energy market is rapidly changing, South Korea, the world’s third-largest importer of liquefied natural gas (LNG) after Japan and China, is also closely monitoring the situation.According to the Korea Customs Service on Sept. 3, South Korea’s cumulative LNG import volume and import val
Korea Gas Corp. (KOGAS) lost nearly US$200 billion over four years due to defects in Korean-type tanks for liquefied natural gas (LNG) carriers it had developed with Korean shipbuilders. This is because Korean shipbuilders developed a tank for LNG carriers but a quality issue has prevented them from
The Korea Gas Corporation (KOGAS) is set to participate in a US$7 billion (9.2 trillion won) gas development project in Mozambique, Africa.The project, dubbed the Mozambique Area 4 Coral North Floating Liquefied Natural Gas (FLNG) project, is a follow-up to the Coral South FLNG, which KOGAS had prev
The author is an analyst for NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed.For June, we change our recommended plays to Doosan Enerbility and KEPCO, drawing attention to both expectations for large-scale NPP projects and improved profitability (thanks to a progressive ra
The International Monetary Fund (IMF) has warned of possible corporate debt distresses in Asian countries, singling out Korea as becoming one of the most vulnerable if high interest rates persist.In its report on corporate debt in Asia on May 29, the IMF aggregated by country the percentage of total
The author is an analyst for NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed.KOGAS’s 1Q23 OP fell short of consensus due to reduced after-tax guaranteed returns and one-off expenses. However, the possibility of recovering accrued accounts receivable in 2H23 and city gas ra
Korea’s shipping industry and a seafarers’ union have called for a halt to the overseas sale of Hyundai LNG Shipping, the country’s largest carrier specializing in liquefied natural gas (LNG) transportation.The Federation of Korea Maritime Industries (FKMI) put out a statement on May 8, taking issue
The author is an analyst for NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed.We continue to recommend KOGAS and KEPCO KPS in May on city gas tariff hike and 1Q23 earnings expectations, respectively. Nuclear plays are likely to perform sluggishly due to the end of the US-Ko
France’s GTT, which receives royalties for cargo holds for liquefied natural gas (LNG) carriers worth hundreds of billions of won built by Korean shipyards, recorded profit growth of over 20 percent in the first quarter of 2023. Despite receiving large-scale LNG carrier orders, Korean shipbuilders a
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed.KOGAS’s 1Q23 OP likely exceeded consensus on favorable oil price and interest rates. But, share price uncertainties remain high due to the: 1) absence of dividend distribution in 2022; and 2) postp
Korea Gas Corporation (KOGAS) is making progress in overseas resource development projects one after another. The state-run gas company is promoting 23 projects in 12 countries around the world, and many of them are generating profits after entering their production stages.KOGAS announced on April 1
KOGAS announced on April 10 that it signed a business agreement with JERA, a global energy company with the world’s largest LNG purchasing power, as a follow-up to the Korea-Japan summit on April 7.JERA, established in 2015 as a joint venture between Japan’s Tokyo Electric Power Company and Chubu El
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed.Although the decision to raise electricity and city gas rates in 2Q23 has been put on hold, investment focused on the need for rate hikes remains valid.EU energy market in last week of MarchOver M
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com -- Ed.The government is considering raising city gas and electricity rates on Mar 31. As the unit price of domestic gas imports is also decreasing amid falling natural gas prices, the level of hike requi
A search for a new owner for Hyundai LNG Shipping is accelerating. Hyundai LNG Shipping is Korea’s No. 1 company in shipping liquid natural gas (LNG). As major shipping companies in the United States and Europe are emerging as candidates for the acquisition of Hyundai LNG Shipping, the shipping comp
Korea Gas Corp. (KOGAS) announced on Nov. 13 that it has started production and shipment of LNG at the Coral South gas field in Mozambique.Coral South is the first development project of the Coral gas field in Mozambique. KOGAS operates a floating liquefied natural gas (FLNG) facility in Coral South
The author is an analyst of NH Investment & Securities. He can be reached at minjae.lee@nhqv.com. -- Ed. Additional natural gas price increase expected during the winter is positive for KOGAS’s E&P business. But, rising accrued accounts receivable at the domestic business is to weigh on earnings in
The author is an analyst of KB Securities. She can be reached at hyejung.jung@kbfg.com. -- Ed. Maintain BUY, target price of KRW58,000 We maintain BUY and TP of KRW58,000 on KOGAS. Our DCF-based TP (0.52x 12m fwd P/B) reflects 3.44% WACC, 0.8% TGR. Our WACC was raised (prev. 2.97%) to reflect an inc
Korean companies are moving to secure liquefied natural gas (LNG) whose price is soaring amid a short supply.POSCO International signed a contract with Cheniere Energy, the largest LNG producer in the United States, in May to import 400,000 tons of LNG annually for 20 years starting 2026. It is the
The author is an analyst of KB Securities. She can be reached at hyejung.jung@kbfg.com. -- Ed. 2Q22P OP of KRW289.4bn (+433.3% YoY) significantly higher than market consensus— KOGAS reported 2Q22 preliminary revenue of KRW8.9tn (+82.9% YoY, -36.7% QoQ), OP of KRW289.4bn (+433.3% YoY, -68.3% QoQ) and