GS Holdings’ Q2 operating profit surges 253% on strong refining margins

GS Holdings reported a 253.4 percent surge in quarterly operating profit for the April-to-June period on year upon higher international oil prices and rising export prices for petroleum products.

The company on Tuesday reported an operating profit of 1.71 trillion won ($1.21 billion) for the second quarter of 2026, beating the market consensus of 1.12 trillion won, compiled by market tracker FnGuide.

The holding company, which owns oil refiner GS Caltex, also reported increases in both revenue and net profit. Quarterly revenue rose 24.9 percent year on year to 7.41 trillion won, while net profit surged 1,180.5 percent to 1.13 trillion won.

Compared to the first quarter of 2026, revenue rose 8.3 percent from 6.84 trillion won, operating profit increased 36.5 percent from 1.26 trillion won and net profit climbed 36.9 percent from 826.7 billion won.

For the first half of the year, GS's operating profit was reported at 2.98 trillion won, up 130.8 percent from the year prior. Revenue rose 17.2 percent and net profit jumped 415.6 percent during the same period.

GS attributed the sharp improvement in its consolidated second quarter results largely to strong earnings at GS Caltex.

“This was driven by wider refining margins amid higher international oil prices and export prices for petroleum products, as well as a temporary inventory effect,” GS said. “In particular, the lubricants business posted record-high earnings due to global supply disruptions.”

It added that operating profit from GS Energy’s resource development business also increased on the back of higher oil prices.

The petrochemical business, however, swung to an operating loss from the previous quarter as higher naphtha costs were not fully reflected in product prices, according to GS. Its power generation subsidiaries — GS EPS and GS E&R — also posted weaker results due to lower system marginal prices and operating rates.

“Oil prices are expected to remain volatile in the third quarter due to developments in the Middle East, while the temporary inventory effect is also expected to fade,” the company said. “How flexibly we respond to these uncertainties will affect our performance.”

BY KIM JI-YE [kim.jiye@joongang.co.kr]