Seoul: SK Innovation Co., South Korea's leading refiner, announced on Wednesday that its net loss expanded in the first quarter compared to the previous year, driven by declining oil prices and refining margins, despite a significant rise in sales.
According to Yonhap News Agency, the company's net loss increased to 125.6 billion won (US$88.4 million) for the quarter ending in March, up from 97.6 billion won in the same period last year, as reported in its regulatory filing. A company spokesperson highlighted that while there was an improvement in battery sales from its battery affiliate and the inclusion of earnings from the merged entity SK E and S Co., the effects were not enough to offset the impact of falling oil prices and lower refining margins on the company's financial performance.
SK Innovation also reported an operating loss of 44.6 billion won for the first quarter, a downturn from an operating profit of 624.7 billion won observed a year ago. Despite the financial setbacks, the company's sales saw a 12.2 percent increase, reaching 21.14 trillion won, compared to 18.86 trillion won in the same timeframe last year.