Dear Valued Stakeholders,
2025 marked a milestone for SK Gas as we completed the foundation for our second growth engine after years of preparation. Despite a challenging business environment, the company achieved clear results in its existing LPG-centered business operations and in its power and LNG business, ensuring stable operations. Building on these achievements, we successfully demonstrated the competitiveness of our LNG-LPG optionality strategy.
Ulsan GPS further strengthened its position as one of the world's most efficient combined-cycle power plants. Additionally, LNG terminal projects supported optimal inventory management and stable operations, further demonstrating operational excellence as an LNG-LPG dual-fuel power plant. These achievements have established a strong foundation for expanding our business across the entire energy value chain.
We also achieved meaningful progress from major new businesses driving future growth. The LNG bunkering project has accelerated through contract signing based on rising demand for LNG-powered ships. The 20MW hydrogen fuel cell project in Ulsan via Lotte SK Eneroot started commercial operation in June, yielding tangible outcomes. Additionally, the ESS project centered in North America began commercial operation in February, supporting power system stability and the expansion of renewable energy.
As the No.1 LPG player in Korea, SK Gas has led market changes and achieved results such as increased sales of 1-ton LPG trucks, transportation optimization in the propane market, and the expansion of long-term contracts with petrochemical and industrial companies, establishing a solid foundation for portfolio expansion.
Business expansion represents more than growth alone. Large-scale infrastructure projects, including LNG terminals, power generation, and energy storage, require the highest standards of operational safety and reliability. SK Gas recognizes that the key to a sustainable company is how safely and stably it manages the expanded operations, rather than growth itself.
Therefore, SK Gas has strengthened management standards across environmental, social, and governance aspects. From an environmental perspective, the company is pursuing low-carbon transformation aiming for Net Zero by 2030. From a social perspective, safety and human rights are fundamental prerequisites for all business operations. From a governance perspective, financial and non-financial risks are managed comprehensively to maintain consistent decision-making principles even amid high uncertainty.
Although these efforts have been recognized through various ESG assessments in global ESG evaluations, SK Gas prioritizes management results that lead to trust more than the evaluation itself. We believe sustainability is demonstrated not by declarations, but by the trust earned through consistent operations and sound decision-making.
SK Gas will continue to embrace new challenges and pursue sustainable growth. Building on our core strengths, we aim to go beyond just selling energy and practice Beyond the Limits by breaking boundaries. We sincerely appreciate your continued trust and support.
Thank you.
Byung Suk Yoon, CEO of SK Gas