SK innovation Q3 OP off 70% on qtr, battery losses narrow on sales increase

SK innovation Co., South Korea’s largest oil refiner and parent to EV battery maker SK on, saw an on-quarter plunge in both its operating profit and net income in the third quarter on declining oil prices and narrowing refining margin.

The company in its regulatory filing on Thursday said its consolidated operating profit in the July-September period reached 703.96 billion won ($496.3 million), losing 69.78 percent from record-large figures a quarter ago but gaining 5.28 percent from a year earlier.

Net profit also plunged 86.91 percent on quarter and 65.46 percent on year to 175.16 billion won, while sales added 14.31 percent from three months ago and 82.49 percent against the previous year.

SK innovation shares were trading 2.72 percent higher at 188,500 won in Seoul trading at 2:24 p.m. Thursday.

The third-quarter operating profit sharply deteriorated due to falling oil prices and thinning refining margin, but the figure beat the market consensus of 564.2 billion won compiled by Yonhap Infomax.

Mainstay oil refining business delivered an operating profit of 316.5 billion won in the third quarter, shriveling from 2.23 trillion won a quarter earlier.

Electric vehicle battery business reported an operating loss of 134.6 billion won, narrowed from 326.6 billion won a quarter ago due to sales growth and increased selling prices despite unfavorable forex conditions. Sales also added 906.1 billion won to total 2.19 trillion won.

Petrochemical division posted a 32.3 billion won increase in operating profit to 108.3 billion won, and lubricants business saw an 80.8 billion won rise to quarterly record 336 billion won.

By Lee Ha-yeon