SK Gas (018670.KS) will buy back and cancel a total of 90 billion won ($63 million) worth of its own shares over the next three years.
The company said its board on the 13th reviewed a medium-term shareholder return plan to buy back and cancel 30 billion won of treasury shares each year from 2026 through 2028. The board also approved the first-year acquisition of 30 billion won in shares. The plan comes on top of existing shareholder return policies and is intended to share the company's performance with investors and lift corporate value.
SK Gas will sign a trust contract and begin purchasing the first 30 billion won tranche on the 14th. All acquired shares are to be cancelled once the buyback is completed.
The company said it decided on the shareholder return program based on the results of its business portfolio diversification and expanded financial capacity. Over the past decade, SK Gas has strengthened the competitiveness of its liquefied petroleum gas business and expanded into liquefied natural gas and power generation.
"Based on the optionality that comes from the price gap between LPG and LNG, we have created synergies across our businesses and expanded our earnings power and financial capacity," SK Gas said. "This year will be a turning point where we confirm the strength of our differentiated growth strategy while preparing a future growth strategy."
SK Gas chose a three-year buyback-and-cancellation program instead of a one-off special dividend. The company said its aim is to raise per-share value through continuous purchases and cancellations rather than a temporary payout, and to keep sharing its growth process and results with shareholders. Starting the purchases immediately after the board meeting also reflects that commitment, it said.
"Based on stable cash from existing businesses, we will invest aggressively in high-growth new businesses, but will continue a balanced capital allocation that expands shareholder returns when investment opportunities are not sufficient," an SK Gas official said.