Seoul: SK Innovation Co., South Korea's leading refiner, announced a sharp narrowing of its third-quarter net losses, attributing the improvement to higher oil prices and enhanced refining margins.
According to Yonhap News Agency, in the three months ending September 30, SK Innovation's net losses decreased to 94.3 billion won (US$65.9 million), a significant improvement from 588.12 billion won in the same period last year. The company credited this turnaround to the profitability of its petrochemical business, which benefited from the rise in oil prices and better refining margins. Additionally, strong performance in the liquefied natural gas (LNG) and renewable energy sectors contributed positively to the earnings.
SK Innovation recorded an operating profit of 573.5 billion won in the September quarter, contrasting with an operating loss of 423.3 billion won a year earlier. The company's sales also experienced a 16.3 percent increase, reaching 20.53 trillion won compared to 17.66 trillion won in the previous year.
The company disclosed plans to prioritize securing contracts for energy storage systems (ESS) in key markets, including the United States, as the demand for electric vehicles (EVs) remains sluggish. In line with this strategy, SK On, the company's EV battery unit, recently entered into an agreement with U.S.-based Flatiron Energy Development to supply ESS units beginning in late 2026.
Furthermore, SK Innovation's business reorganization plan will see the merger of SK On with SK Enmove Co., a provider of EV lubricants and thermal management solutions, with the new entity commencing operations on Saturday.
From January to September, SK Innovation's net losses slightly narrowed to 1.25 trillion won from 1.33 trillion won in the same period last year. However, the company's operating profit declined 28.5 percent to 111.27 billion won from 155.56 billion won, while sales increased by 10.3 percent to 60.99 trillion won from 55.31 trillion won.