{"id":20151,"date":"2025-02-06T11:30:22","date_gmt":"2025-02-06T02:30:22","guid":{"rendered":"https:\/\/askinno.com\/global\/?p=20151"},"modified":"2026-01-29T17:27:05","modified_gmt":"2026-01-29T08:27:05","slug":"20151","status":"publish","type":"post","link":"https:\/\/askinno.com\/global\/archives\/20151","title":{"rendered":"[SK Innovation\u2019s Q4 2024 Financial Results] First Results Post-SK E&S Merger: Operating Profit of KRW 159.9 Billion, Marking a Return to Profitability"},"content":{"rendered":"

\u25a0 Return to profitability driven by improved refining margins and the inclusion of SKI E&S\u2019s November\u2013December operating profit (KRW 123.4 billion)<\/span><\/strong><\/p>\n

\u25a0 Strengthened revenue structure by integrating oil and LNG operations, forming a comprehensive energy value chain<\/span><\/strong><\/p>\n

\u25a0 SK Earthon successfully began test production of crude oil in Vietnam Block 15-2\/17, signaling growth potential in resource development<\/span><\/strong><\/p>\n

\u25a0 Board of Directors approved a dividend of KRW 2,000 per share, underscoring the company\u2019s commitment to shareholder returns<\/span><\/strong><\/p>\n

\u00a0<\/p>\n

SK Innovation Co., Ltd. today announced its financial results for the fourth quarter (Q4) of 2024, reporting consolidated revenue of KRW 19.41 trillion and an operating profit of KRW 159.9 billion, signaling a return to profitability. For the full year, SK Innovation achieved consolidated revenue of KRW 74.72 trillion and an operating profit of KRW 315.5 billion.<\/span><\/p>\n

The company attributed its Q4 turnaround to improved refining margins and the inclusion of SK Innovation E&S\u2019s operating profit following the November 1 merger.<\/span><\/p>\n

With the completion of its merger with SK E&S (now SK Innovation E&S), SK Innovation has established a comprehensive energy value chain spanning oil, liquefied natural gas (LNG), and other energy sectors. Full-year contributions from SK Innovation E&S\u2019s operations are expected to further enhance profitability and financial stability in 2025 as synergies across energy businesses take shape.<\/span><\/p>\n

In 2024, SK Innovation E&S recorded an annual operating profit of KRW 1.12 trillion, with KRW 123.4 billion from November and December reflected in SK Innovation\u2019s Q4 earnings.<\/span><\/p>\n

\u00a0<\/p>\n

Boosting Growth through Resource Development<\/span><\/strong><\/p>\n

SK Earthon, SK Innovation\u2019s oil and gas exploration subsidiary, achieved a significant milestone in January 2025 by confirming crude oil reserves and successfully initiating test production at Vietnam Block 15-2\/17. The company expects to expand revenues and profitability through additional exploration and development projects, including Vietnam Block 16-2 and Malaysia Block 427.<\/span><\/p>\n

\u00a0<\/p>\n

Commitment to Shareholder Value<\/span><\/strong><\/p>\n

The Board of Directors approved a dividend payment of KRW 2,000 per share, to be finalized at the company\u2019s Annual General Meeting of Shareholders in March 2025. SK Innovation reaffirmed its dedication to enhancing shareholder value through improved financial health and strengthened business competitiveness.<\/span><\/p>\n

\u00a0<\/p>\n

\n

Q4 2024 Performance by Business Segment<\/span><\/strong><\/span><\/p>\n

\u2022 Refining business: <\/span><\/strong>Revenue of KRW 11.69 trillion; operating profit of KRW 342.4 billion. <\/span>Improved refining margins and inventory gains, supported by increased demand for heating oil and favorable foreign exchange rates, drove a return to profitability.<\/span><\/p>\n

\u2022 Petrochemical business: <\/span><\/strong>Revenue of KRW 2.37 trillion; operating loss of KRW 84.2 billion. Despite higher sales volumes, declining spreads for key products and inventory losses contributed to the segment\u2019s operating loss.<\/span><\/p>\n

\u2022\u00a0 Lubricants business: <\/span><\/strong>Revenue of KRW 970.7 billion; operating profit of KRW 139.5 billion. While operating profit declined quarter-on-quarter (QoQ) due to weaker seasonal demand and lower selling prices, the segment maintained stable annual profitability.<\/span><\/p>\n

\u2022 Exploration & Production (E&P) businesss: <\/span><\/strong>Revenue of KRW 379.2 billion; operating profit of KRW 145.8 billion*. Operating profit increased sequentially due to higher sales volumes, favorable foreign exchange rates, and rising gas prices, offsetting the impact of falling global oil prices.<\/span><\/p>\n

\u2022 Battery business: <\/span><\/strong>Revenue of KRW 1.60 trillion; operating loss of KRW 359.4 billion. Sales volumes increased by KRW 167.9 billion compared to the previous quarter. However, one-time costs, including inventory valuation losses, and ongoing investments in growth initiatives led to an operating loss. The segment benefited from KRW 81.3 billion in Advanced Manufacturing Production Tax Credit (AMPC) under the U.S. Inflation Reduction Act (IRA), representing a 34% increase from the prior quarter.<\/span><\/p>\n

\u2022 Materials business: <\/span><\/strong>Revenue of KRW 31.2 billion; operating loss of KRW 74.2 billion. Despite higher sales volumes, one-time inventory-related costs contributed to an operating loss.<\/span><\/p>\n

\u2022 SK Innovation E&S: <\/span><\/strong>Revenue of KRW 2.35 trillion; operating profit of KRW 123.4 billion*. Lower seasonal power demand and weaker global oil prices affected profitability compared to the previous quarter.<\/span><\/p>\n

*These figures reflect performance from November and December, following the merger.<\/span><\/em><\/em><\/p>\n

\u00a0<\/p>\n

2024 Full-Year Results and 2025 Outlook<\/span><\/strong><\/span><\/p>\n

For 2024, SK Innovation\u2019s business segments delivered the following results:<\/span><\/p>\n

\u2022 Refining business: <\/span><\/strong>Revenue of KRW 49.84 trillion; operating profit of KRW 461.1 billion.<\/span><\/p>\n

\u2022 Petrochemical business: <\/span><\/strong>Revenue of KRW 10.35 trillion; operating profit of KRW 125.3 billion.<\/span><\/p>\n

\u2022 Lubricants business: <\/span><\/strong>Revenue of KRW 4.24 trillion; operating profit of KRW 686.7 billion.<\/span><\/p>\n

\u2022 E&P business: <\/span><\/strong>Revenue of KRW 1.48 trillion; operating profit of KRW 573.4 billion.<\/span><\/p>\n

\u2022 Battery business: <\/span><\/strong>Revenue of KRW 6.27 trillion; operating loss of KRW 1.13 trillion.<\/span><\/p>\n

\u2022 Materials business: <\/span><\/strong>Revenue of KRW 133.4 billion; operating loss of KRW 282.7 billion.<\/span><\/p>\n

\u2022 SK Innovation E&S: <\/span><\/strong>Revenue of KRW 2.35 trillion; operating profit of KRW 123.4 billion (November\u2013December results).<\/span><\/p>\n

Looking ahead to 2025, SK Innovation expects refining margins to remain stable, supported by rising demand for jet fuel despite increased crude oil production from non-OPEC+ countries. <\/span><\/p>\n

The petrochemical business is expected to benefit from reduced global paraxylene (PX) capacity expansions and improved demand. However, concerns over economic slowdowns in major global markets are likely to limit margin improvements. Moving forward, the company plans to strengthen its business competitiveness by improving financial structure and securing price and quality advantages for its products.<\/span><\/p>\n

The lubricants business is projected to maintain stable profitability, supported by strong demand for SK Enmove\u2019s premium Group III base oil products.<\/span><\/p>\n

Regarding E&P business, SK Earthon successfully achieved test production of high-quality crude oil in January 2025 at Vietnam Block 15-2\/17, producing up to 10,000 barrels per day. The company plans to proceed with additional exploration and evaluation at the block to confirm reserves and move toward full-scale development. <\/span><\/p>\n

The battery business aims for double-digit annual revenue growth. This will be driven by increased sales volume in the strategic North American market and higher Advanced Manufacturing Production Tax Credit (AMPC) benefits under the U.S. Inflation Reduction Act (IRA). The company also expects profitability improvements through cost structure optimization and synergies from its mergers with SK Trading International and SK Enterm.<\/span><\/p>\n

For the materials business, sales volumes are anticipated to gradually increase, supported by expanded sales to existing customers and new orders from recently acquired clients.<\/span><\/p>\n

For SK Innovation E&S, the company plans to generate stable profits by ensuring the timely introduction of competitive LNG supply, including the commercial production of the Caldita-Barossa (CB) gas field in Australia, which is scheduled to commence in the second half of this year with an annual production capacity of 1.3 million tons.<\/span><\/p>\n

Seo Kun-ki, Head of SK Innovation\u2019s Finance Division (CFO), stated, \u201cWhile we anticipate an uncertain business environment this year due to changes in the global landscape affecting energy sectors such as oil and gas, we plan to accelerate the creation of synergies and strengthen our comprehensive energy value chain through the merger with SK E&S. We remain committed to pursuing our ambition of becoming a world-class energy company in the global market.\u201d<\/span><\/p>\n

\u00a0<\/p>\n\n\n

[Attached]<\/strong><\/p>\n\n\n\n

1. SK Innovaion quarterly earnings (based on K-IFRS)<\/strong> (Unit: KRW hundred million)<\/p>\n\n\n\n

<\/th>Q4 202<\/strong><\/strong>3<\/th>Q3 202<\/strong><\/strong>4<\/th>Q4 202<\/strong>4<\/th>YoY<\/strong><\/th>QoQ<\/strong><\/th><\/tr><\/thead>
Revenue<\/strong><\/strong><\/strong><\/strong><\/td>195,293<\/td>176,570<\/td>194,057<\/td>-1,236<\/td>17,487<\/td><\/tr>
Operating income<\/strong><\/strong><\/strong><\/strong><\/strong><\/td>726<\/td>-4,233<\/td>1,599<\/td>873<\/td>5,832<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

2. 2024 full year results (based on K-IFRS)<\/strong> (Unit: KRW hundred million)<\/p>\n\n\n\n

<\/th>Refining*<\/strong><\/strong><\/th>Petrochem*<\/strong><\/strong><\/th>Lubricants<\/strong><\/strong><\/th>E&P<\/strong><\/strong><\/th>Battery<\/strong><\/strong><\/th>Materials**<\/strong><\/strong><\/th>E&S***<\/strong><\/th>Staff<\/th>Total<\/strong><\/strong><\/th><\/tr><\/thead>
Revenue<\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/strong><\/td>498,399<\/td>103,517<\/td>42,354<\/td>14,766<\/td>62,666<\/td>1,334<\/td>23,537<\/td>597<\/td>747,170<\/td><\/tr>
Operating income<\/strong><\/strong><\/strong><\/strong><\/strong><\/td>4,611<\/td>1,253<\/td>6,867<\/td>5,734<\/td>-11,270<\/td>-2,827<\/td>1,234<\/td>-2,447<\/td>3,155<\/td><\/tr><\/tbody><\/table>
(*) Refining: SKE, SKTI, SKIPC refining business \/ Petrochem: SKGC, SKIPC petrochemical business
(**) Materials: Based on consolidated financial statements of SK Innovation, which removed internal transactions of SK Innovation affiliates
(***) E&S\u2019s figures reflect the performance for November and December following the merger.<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

\u25a0 Return to profitability driven by improved refining margins and the inclusion of SKI E&S\u2019s November\u2013December operating profit (KRW 123.4 billion) \u25a0 Strengthened revenue structure by integrating oil and LNG operations, forming a comprehensive energy value chain \u25a0 SK Earthon successfully began test production of crude oil in Vietnam Block 15-2\/17, signaling growth potential in … Read more<\/a><\/p>\n","protected":false},"author":2,"featured_media":20173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1914,1915],"tags":[1818,1968,1961,699,469,1041,1971,377,15],"class_list":["post-20151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-presspress","category-press-releases","tag-2024-q4","tag-2024-report","tag-business-performance","tag-earnings","tag-financial-results","tag-op","tag-q4-2024","tag-revenue","tag-sk-innovation"],"acf":[],"_links":{"self":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/20151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/comments?post=20151"}],"version-history":[{"count":17,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/20151\/revisions"}],"predecessor-version":[{"id":154023,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/20151\/revisions\/154023"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media\/20173"}],"wp:attachment":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media?parent=20151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/categories?post=20151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/tags?post=20151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}