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SK Innovation Reports Remarkable Q3 Performance with Surge in Oil Prices and Battery Division Recovery

SK Innovation sees a 122% surge in Q3 operating profit, propelled by robust oil business gains and the lowest-ever battery division loss
South Korea
s 096770.KO Mid and Small Cap 2000
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SK Innovation, a prominent player in the energy sector, announced robust third-quarter performance, marked by a notable 122% surge in operating profit. This remarkable upswing is attributed to a substantial surplus in the oil business, propelled by soaring oil prices, and a historic milestone in the battery division.

The company reported a 13% decline in sales compared to the same period last year, amounting to KRW 19.8891 trillion. Despite the dip in sales figures, SK Innovation’s operating profit witnessed an extraordinary 122% surge, reaching KRW 1.5631 trillion. This dramatic turnaround, from a deficit in the previous quarter to a surplus in just one quarter, underscores the resilience and adaptability of SK Innovation.

The oil business spearheaded this resurgence, recording a surplus of KRW 1.1125 trillion, effectively escaping the deficit that marked the preceding quarter. The chemical business also showcased a positive performance, with a surplus of KRW 237 billion, reflecting a notable KRW 66.8 billion increase from the previous quarter. This boost was fueled by heightened inventory profits, driven by the upswing in naphtha prices. Additionally, the lubricant business demonstrated improved profitability, attributed to the surge in raw material prices.

While the battery business is yet to emerge from the red, it witnessed continued growth in sales, amounting to KRW 3.1727 trillion, representing an impressive 45% surge compared to the same period last year. Notably, the battery division achieved a milestone with its lowest-ever operating loss for a quarter, reporting a figure of 86.1 billion won.

SK Innovation’s third-quarter performance showcases its strategic adaptability and ability to navigate through dynamic market conditions. The surge in oil prices and the historic low in battery division losses underscore the company’s resilience and commitment to sustainable growth. With a strong foothold in the energy sector, SK Innovation is poised to capitalize on emerging opportunities and contribute to shaping the future of the industry.

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