Seoul: Korea Gas Corp. (KOGAS) announced a significant decline in its third-quarter net profit, which fell by more than 44 percent compared to the previous year. This downturn is attributed to a decrease in global energy prices and an increase in gas bill subsidies for low-income households.

According to Yonhap News Agency, KOGAS reported a net profit of 86.8 billion won (US$59.1 million) for the July-September period, marking a 44.1 percent decrease from the same quarter last year. The company's operating income also saw a decline, falling 11.5 percent year-on-year to 389 billion won, while sales dropped 21.4 percent to 6.37 trillion won.

KOGAS highlighted that the contraction in sales was influenced by a roughly 6 percent decrease in the average selling price of its gas products, which aligns with the reduction in international oil prices. Additionally, the decline in operating profit is largely due to increased gas bill subsidies aimed at supporting low-income households and a reduced return on investment from wholesale supply, affected by lower interest rates.

Despite the financial challenges, KOGAS reported an improvement in its financial stability, with the company's debt ratio decreasing to 375 percent by the end of September, down from 403 percent a year earlier.