SK Innovation disclosed its financial performance for the past year, revealing a slight dip in sales to KRW 77.2885 trillion and a significant reduction in operating profit by 51% to KRW 1.9039 trillion. The fourth quarter showed a 1.8% decrease in sales and a dramatic 95% fall in operating profit. However, the company noted an improvement in quarterly profitability, attributed to enhanced productivity in overseas subsidiaries, especially in North America, and effective cost management.
The company also highlighted a strategic shift in shareholder value enhancement, opting to cancel nearly 5 million treasury shares, aiming to surpass the initially projected shareholder return rate. This move aligns with government policies to mitigate the “Korea discount” and promises to shareholders for increased value.
In response to a slowing global EV demand, SK Innovation is adjusting its operations and focusing on both qualitative and quantitative growth, bolstered by a substantial order backlog exceeding 400 trillion won. This backlog is expected to secure long-term operational stability and profitability.
Financially, SK Innovation reported an increase in total assets, driven by investments in new facilities and strong operating cash flow, while also managing a moderate increase in debt levels. The company remains focused on maintaining financial stability and enhancing corporate value, amidst ongoing macroeconomic uncertainties and market conditions.
Furthermore, SK Innovation is planning a cautious investment strategy for 2024, with a focus on strategic markets and partnerships to ensure long-term competitiveness. This includes significant investments in the battery business and a careful approach to capital expenditure, reflecting a commitment to financial prudence and strategic growth in challenging times.
