GS Caltex Steps on Gas to Explore Eco-Friendly, New Businesses

President Huh Se-hong of GS Caltex.

GS Caltex President Huh Se-hong called for company to secure its own technology capabilities and strike partnerships with a diverse range of companies to successfully implement new businesses.

President Huh made the remarks at a meeting with researchers of GS Caltex Research Institute in Daedeok Research Complex in Daejeon on Jan. 6.

Huh was on his first New Year’s outside inspection tour. GS Caltex Research Institute, established in 1998, is GS Caltex’s R&D hub.

He gave heed to researchers with GS Caltex Research Institute as he made his first inspection tour here shortly after he took office in January 2019.

In the latest meeting with researchers, President Huh explained this year’s business strategies and the direction of future strategies.

“Renewable energies and circulating economy businesses are no longer options,” President Huh said. He stressed that GS Caltex will step on the gas to explore new business items that can yield profits in a long-term perspective, such as hydrogen and waste plastic reutilization.

Huh called for the company to raise value chain competitiveness through partnerships with a variety of companies, beyond efforts to secure its own technology capabilities.

President Huh’s visit was designed to provide full support to the research institute for the development of future businesses and aggressively communicate with companywide members, the company said.

The following day, President Huh toured GS Caltex’s plant in Yeosu. In his meeting with field staffers, President Huh stressed the establishment of goals, exploring ideas and deep-rooted challenging spirit and partnership.

He called for the execution of good risk-taking to seize opportunities even if attempts end up with failures, meaning aggressive work innovation regardless of failures.

GS Caltex President Huh Se-hong poses with researchers of GS Caltex Research Institute in Daedeok Research Complex in Daejeon on Jan. 6. (Photos: GS Caltex)

‘GS Caltex Pursues Two-Pronged Refinery and Non-Refinery Core Strategies’

In his New Year’s message on Jan. 3, President Huh declared this year as the first year of company’s deep transformation, meaning fundamental innovation.

GS Caltex aims to build dual core portfolio of refinery and non-refinery businesses.

As for this year’s management strategies, President Huh called for aggressively executing overall business innovation in the conventional business value chains and materializing GS Caltex’s mid- and long-term strategies to build a duel core portfolio of refinery and no-refinery businesses and put them into practice.

President Huh also stressed digital transformation as an essential task.

“Safety, health and environment (SHE) management is important as pre-conditions for the execution of successful deep transformation,” he said.

Huh urged GS Caltex executives and staffers to make the year 2022 a hopeful year in which the company will make a leap forward as the most respected energy and company based on the industry’s top-tiered competitiveness.

GS Caltex Sees Operating Profit Return to 2 Trillion Won in 4 Years

GS Caltex see its operating profit top 2 trillion won in four years on the back of rising demand of petroleum products and improving refining margins.

GS Caltex said the refinery company posted 34,538.4 billion won in sales and 2,018.9 billion won in operating profit and 1,051.7 billion won in net profit last year.

GS Caltex saw operating profit turn around 919.2 billion won in operating loss last year.

GS Caltex saw its operating profit top 2 trillion won in 4 years since 2017 when the refinery company chalked up 2,001.6 billion won in operating profit.

It was the third time GS Caltex had topped 2 trillion won in operational profit. The company posted 2,020 billion won in 2011 and 2,140 billion won in 2016.