Korea National Oil Corp. (KNOC) pledged to achieve sustainable growth, as the company held a ceremony to celebrate its 46th anniversary at KNOC headquarters in Ulsan on March 4.
KNOC President Kim Dong-sub said, “Writing history is a process of moving toward the future, and you are proud heroes who write a new history of Korea’s energy self-sufficiency.”
“Effectively working of petroleum stockpile and use of reserve oil, a top priority policy of resources safety is owed to your efforts, and we have to continue domestic continental shelf development to realize a dream of a oil producer and effectively carbon reduction.” President Kim said.
KNOC was established in 1979 to secure petroleum stockpiles in the wake of two oil shocks in the 1970s.
Despite worsening external conditions, such as international crude oil price decline and continued high interest rates, KNOC logged a net profit last year for three years in row thanks to the efficient operation of core assets, companywide retrenchment and the optimization of operational funds.
On the same day, they vowed to ensure sustainable management and put into practice ethics management.
KNOC Teams Up with Kuwait to Stockpile Crude Oil
In accordance with a contract on joint crude oil stockpiles, struck last year with Kuwait Petroleum Corp., Kuwait’s state-run oil company, Korea National Oil Corp. brought 2 million barrels of crude oil from Kuwait.
An oil tanker carrying 2 million barrels of Kuwait export crude oil arrived at Ulsan Port on April 22.
The joint crude oil stockpile project is a project involves leasing idled stockpile facilities to foreign state-run oil companies to stockpile crude oil.
In normal times, KNOC earns foreign currency revenue by leasing facilities and raising its capability to cope with a national supply crisis by securing preferential rights to buy crude oil.
In doing so, the organization raises public fiscal efficiency by sharing crude oil stockpile costs with oil producers.
KNOC President Kim Dong-sub said, “The collaboration is expected to further ramp up ties between Korea and Kuwait, as well as between KNOC and KPC, based on ‘K-friendship’. KNOC will further ramp up trust and reciprocity between the two countries through diverse collaboration with Kwait, and we will expand international joint crude oil stockpile projects and strengthen Korea’s energy security,” he said.
KNOC Logs Net Profit in 2024 for 3rd Consecutive Year
Korea National Oil Corp. posted 191.5 billion won in net profit, 3,524.4 billion won in sales and 1,273.419 billion won in operating profit in 2024 on a consolidated basis.
KNOC logged a net profit for the third straight year since 2022 when the corporation turned a profit for the first time in 12 years.
Outside management conditions, such as international crude and natural gas price declines and continued global inflation and high price hikes were worsened las year, but KNOC achieved a net profit on the back of management innovation efforts, such as the efficient operation of core assets, companywide retrenchment and optimization of operating funds.
KNOC explored and executed steps to maximize practical financial performances, such as coping with crude oil declines by increasing production.
The plan calls for operating a financial soundness committee and task force designed to maximize revenues.
In the petroleum development sector, KNOC exceeded production goals by 47 percent by optimizing production treatment facilities operated by Dana of the UK, a subsidiary of the corporation.
KNOC saw asset values rise by securing an additional 3.5 million barrels of reserves through the development of an existing production mining block area in Al Dhafra, the United Arab Emirates. In the petroleum stockpile sector, the corporation achieved the best-ever profit by employing thorough trading strategies using the stockpiled assets.
KNOC made proactive efforts to improve profitability by encouraging companywide retrenchment and controlling unnecessary spendings.
Meanwhile, KNOC cut 104.2 billion won in borrowing in 2024 — curtailing 1,861.3 billion won in cumulative borrowing over four years.
The reduced borrowings were owed to President Kim’s efforts to improve cash flow by rising overseas investments and lowering its dependence on outside borrowing, in accordance with his plan to ramp up financial soundness. If the corporation maintains its current trend, it is predicted to resolve capital impairment within a few years.
KNOC President Kim Dong-sub said, “Amid hard outside conditions, KNOC made a feat – achieving a net profit for three years in row and reducing borrowings for the fourth consecution year on the back of every employee’s efforts, and we will make KNOC a public entity trusted by people by continuously raising business revenues and financial sounding through management rationalization.”
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