E1

E1 is an energy company under the LS Group whose core business is the import, storage, transport, and sale of LPG, forming a duopoly in Korea's domestic LPG market together with SK Gas.

The company operates large-scale storage terminals in Yeosu (1.6 million tons per year), Incheon (2 million tons per year), and Daesan (1.1 million tons per year), along with a network of 388 filling stations as of the end of the first quarter of 2026.

LPG accounted for 99.3% of revenue based on first-quarter 2026 sales, with the remainder consisting mainly of leasing and vessel chartering revenue.

Feedstock is procured through long-term supply contracts with Middle Eastern producers such as Saudi Arabia and the United Arab Emirates as well as North American suppliers.

In September 2024, E1 entered power generation by acquiring Pyeongtaek Energy & Power, which operates an 833MW LNG combined-cycle power plant, and it is further expanding this segment through the pending acquisition of Yeosu Green Energy, which holds a 495MW district energy business license.

Subsidiaries include LS Securities, engaged in investment trading and brokerage, and LS Networks, engaged in distribution and leasing, both of which are consolidated into group results.

Overseas, E1 exports LPG to countries including Thailand, China, Taiwan, Japan, and Vietnam, and is pursuing construction of a refrigerated LPG tank terminal in Hai Phong, Vietnam to expand its presence in Southeast Asia.

More recently, the company has launched an integrated fueling station brand called 'E1 Orange Plus' that combines LPG with hydrogen and electric vehicle charging services.

While rival SK Gas has advanced considerably toward LNG, power generation, and global trading, E1 maintains a business structure with comparatively higher reliance on domestic LPG distribution.

Consolidated revenue in 2025 came to KRW 10.39 trillion, down from KRW 11.19 trillion in 2024, while operating profit rose to KRW 324.1 billion from KRW 217.6 billion, lifting the operating margin from 1.9% to 3.1%.

Net income attributable to owners also increased, from KRW 62.9 billion in 2024 to KRW 104.8 billion in 2025, continuing a recovery in profitability. Even so, this remains below the KRW 213.2 billion recorded in 2023, illustrating that annual net income swings far more sharply than revenue or operating profit.

On a quarterly basis, results were relatively stable through the second and third quarters of 2025, with revenue of KRW 2.27 trillion and operating profit of KRW 100.7 billion in Q2, and revenue of KRW 2.42 trillion and operating profit of KRW 90.9 billion in Q3, but the fourth quarter saw operating profit fall to KRW 27.3 billion despite higher revenue of KRW 2.94 trillion, with owners' net income turning negative at KRW -18.9 billion.

In the first quarter of 2026, revenue climbed further to KRW 3.59 trillion, yet operating profit swung to a sharp loss of KRW -156.2 billion; industry commentary attributes this to a surge in international LPG import prices that could not be fully passed through to domestic supply prices because of the government's price-stability policy, squeezing margins.

Notably, owners' net income for the same quarter turned positive at KRW 66.8 billion, reflecting non-operating items such as derivative-related gains and improved results at subsidiary LS Securities amid a buoyant stock market.

In the second quarter of 2026, both operating profit (KRW 117.9 billion) and owners' net income (KRW 80.1 billion) recovered clearly on revenue of KRW 4.40 trillion.

This pattern of quarterly swings stems from the structural nature of the LPG trading business, in which the timing gap between derivative valuation and physical delivery, combined with movements in international LPG prices, feeds directly into reported earnings.

Korea's domestic LPG distribution market is an effective duopoly between E1 and SK Gas, with both companies setting monthly domestic supply prices based on Saudi Aramco's Contract Price and the won-dollar exchange rate.

However, the government has at times requested restraint on price increases or applied temporary fuel-tax cuts to manage inflation, creating a structural lag between cost and selling price during periods of sharp international price increases that compresses margins.

LPG benefits from an established nationwide distribution network and ease of storage and transport without requiring pipelines, positioning it as a relatively practical bridge fuel in the transition toward carbon neutrality and supporting continued industrial fuel-switching demand.

Over the longer term, however, expanding electric vehicle adoption and tightening energy-efficiency regulation are expected to exert downward pressure on transport and residential LPG demand.

Rival SK Gas has progressed considerably toward LNG terminals, power generation (Ulsan GPS), and overseas trading, posting increases in both revenue and operating profit in the first quarter of 2026 in contrast to E1's results, whose higher reliance on domestic LPG distribution left it more exposed to the same cost shock.

On the global trading front, both companies operate trading entities in hubs such as Singapore and the United States to respond to international markets around the clock, and supply chains are being reshaped as the United States expands LPG exports, prompting Asian importers such as India to reduce reliance on Middle Eastern suppliers.

E1 is pursuing two parallel tracks in power generation.

The 833MW LNG combined-cycle plant of Pyeongtaek Energy & Power, acquired in 2024, is already operating and is now fully reflected in consolidated results, while the acquisition of Yeosu Green Energy, which holds a 495MW district energy business license, advanced significantly after receiving stock-acquisition approval from the Ministry of Trade, Industry and Energy's Electricity Committee in July 2026.

Yeosu Green Energy plans to demolish existing coal-fired facilities on a former Korea Midland Power coal plant site and build an LNG plant there, with detailed negotiations ongoing.

Overseas, the company is constructing a refrigerated LPG tank terminal in Hai Phong, Vietnam, targeted for completion in the second half of 2026, alongside plans to supply feedstock-grade LPG to petrochemical companies in a nearby industrial complex.

On shareholder returns, the dividend policy of a minimum 15% payout of separate net income that applied for 2023-2025 has expired, and a new policy for 2026-2028 remains under review without formal announcement.

The company has also stated that decisions on the disposal or retirement of treasury shares (1,078,249 shares held as of the end of 2025) will be finalized through board or shareholder resolutions before the statutory retirement deadline under commercial law.

The direction of this power-business expansion and shareholder-return policy stand out as key variables for future earnings stability and capital allocation.