1. What Happened with KD Gas?

KD Gas reported disappointing Q2 2025 results, with revenue, operating profit, and net income all decreasing year-over-year. The decline was also steep compared to the previous quarter.

2. Why the Earnings Decline?

The main reasons for this decline are analyzed as stabilizing natural gas prices and decreased demand due to the economic slowdown. The seasonal nature of the city gas industry, with Q2 being the off-season, also contributed.

3. So, What’s Next?

While a short-term recovery seems challenging, there are positive factors in the long run.

  • Positive Factors:
    • Expected interest rate cuts in the second half
    • Potential stabilization of raw material prices and logistics costs
    • Improved financial soundness
    • New business ventures such as pipe leasing and hydrogen-related projects
  • Negative Factors:
    • Earnings volatility due to dependence on industrial demand and seasonality of residential demand
    • Indirect impact of rising exchange rates

4. Action Plan for Investors

Caution is advised for short-term investments, but the long-term investment value can be considered. The following strategies are recommended:

  • Monitor future earnings trends and new business performance
  • Keep an eye on changes in macroeconomic indicators
  • Track the progress of new business ventures