SK Innovation posts record third-quarter operating profit of 3.7 trillion won

SK Innovation said Thursday its third-quarter operating profit rose 532.5 percent from a year earlier to 3.7 trillion won ($2.77 billion), a record for any third quarter, as strong petroleum product export margins and a robust lubricants business lifted earnings. Revenue for the quarter climbed 39.7 percent on-year to 28.8 trillion won ($21.5 billion), while the company swung to a net profit of 2.64 trillion won ($1.98 billion) from a net loss of 94.3 billion won (-$70.6 million) a year earlier.

The company attributed the refining gains to tighter global supply of petroleum products, citing lower run rates at Middle Eastern refineries and Russian restrictions on diesel exports, which combined with summer driving-season demand to push up international product prices and refining margins.

With petroleum accounting for 64 percent of first-half revenue, the refining result carried the quarter. Its lubricants unit SK Enmove posted quarterly revenue of 2.37 trillion won ($1.77 billion) and operating profit of 1.09 trillion won ($816 million), up 399 billion won ($298 million) from the previous quarter. The result surpassed the unit's previous full-year record operating profit of 1.07 trillion won ($802 million) set in 2022, making it the unit's largest quarterly profit on record. SK Innovation E&S, the group's power generation arm, reported revenue of 3.12 trillion won ($2.34 billion) and operating profit of 774 billion won ($580 million), an increase of 668 billion won ($500 million) from the preceding quarter. Higher seasonal electricity demand lifted system marginal prices, while stable long-term LNG contracts and commissioning volumes from the Barossa gas field in Australia improved plant utilisation.

The battery subsidiary SK On remained in the red, posting revenue of 1.53 trillion won ($1.14 billion) and an operating loss of 80.5 billion won. Sales and operating results declined from the previous quarter on lower volumes and the base effect of one-off revenue booked in the prior period, though underlying profitability improved once those items were excluded.