Hanwha Securities "Korea Gas Corporation expects, overseas resources development to improve profitability."

[Korea goyounghun financial newspaper reporter] had raised the target price on Hanwha Securities 15 days overseas resources development projects are expected to improve profitability doendamyeo opinions investment in the Korea Gas Corporation 'BUY' to 6 million.

Hanwha Securities Jun Gi researchers "have not only a quarterly basis reflect the impairment sustained in overseas resource development projects is also an annual basis recorded a net loss" "but gotta years to improve overseas business profitability in 2017 will increase profits with rates adjusted He diagnosed would. "

Korea Gas Corporation in the fourth quarter of 2016 revenues decreased by 4.7% YoY to 6.2 trillion won, operating profit of 219.7 billion won posted a decline of 9.0% YoY.

New Researcher "Wolsong the plant operating sales volume by delays, but increased sales by selling price declines fell, fell short of the taxes added pay and ordinary consensus, this margin to rising labor costs due to wage litigation gotta deteriorating operating profit market 315.8 billion won "and" Australia GLNG 4204 billion, 333.5 billion won in Iraq Oh Cass overseas projects in poor suffered impairment to reflect the net loss was 780.7 billion won a record, "he said analyzes.

He said, "while handling damage the 2016 international non-performing assets, the expected depreciation savings of 200 billion won a year" and "Australia GLNG projects break-even point if oil prices maintain the $ 50 level and production to achieve the target level the installation is expected to fall, "he decided.

Following "an increase in operating profit margins and adjust basal rates of overseas resources development projects is still enough upside potential," he predicted.



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