SK Innovation net profit falls 65.5 percent on year in third quarter

SK Innovation’s net profit fell 65.5 percent on year to 175.1 billion won ($123.1 million) in the third quarter. Declining oil prices and refining margins, weighed down by concerns over the global economy slowdown, pushed down the bottom line.

The SK logo is shown on the SK office building in Jongno District, central Seoul, where SK Innovation is headquartered. [NEWS1]

SK Innovation’s net profit fell 65.5 percent on year to 175.1 billion won ($123.1 million) in the third quarter. Declining oil prices and refining margins, weighed down by concerns over the global economy slowdown, pushed down the bottom line.

The figure fell short of the market consensus of 188.1 billion won compiled by FnGuide.

Operating profit was 704 billion won, up 5.3 percent compared to the same period a year earlier, yet down 69.8 percent on quarter. It beat the consensus of 641.3 billion won.

Sales rose 82.5 percent on year to 22.8 trillion won, beating the analyst forecast of 19.3 trillion won.

“Despite the lubricants business logging a record quarterly operating profit and the profit margin increase in the battery business, the decline in oil prices and refining margins — caused by global recession woes — brought down the total operating profit significantly,” SK Innovation said in a press release.

Yet the outlook for the fourth quarter remains optimistic, as the refining margin is expected to improve during the winter season.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]