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01 |<\/span> Good performance is expected to continue in the next quarter <\/span><\/strong><\/p>\n <\/p>\n IBK Securities\u2019 analyst, Jeon Chang-hyeon predicted in a report dated May 24th<\/sup> that \u201cThis year, SK Innovation\u2019s oil refining business will bounce back, while its battery business will continue to grow further.\u201d<\/strong> \u201cSK Innovation\u2019s refining business, which was dragged down by the COVID-19 pandemic, is expected to get back on track, achieving a turnaround in its annual profit this year,\u201d he added.<\/span><\/p>\n <\/p>\n Regarding the EV battery business, Jeon forecast, \u201cIt will continue to grow and become even more profitable as a result of the company\u2019s global expansion.\u201d He explained, “SK Innovation\u2019s aggressive expansion in battery production, and order backlog worth KRW 80 trillion (600GWh) will play a significant role in boosting its battery sector.\u201d \u201cFurthermore, the company is expected to increase its EBITDA in 2021 and have earn profits in 2022.”<\/span><\/p>\n <\/p>\n In addition, Jeon commented in the report, \u201cSK Innovation\u2019s revenues and operating profits in Q2 will reach KRW 10.396 trillion (up 44% YoY), and KRW 513 billion (turnaround) respectively.\u201d <\/span><\/p>\n <\/p>\n Analysts from Hana Financial Investment, Yoon Jae-sung and Ha Jae-seon predicted in their report, which was also released on the 24th<\/sup>, \u201cThe global supply and demand of petroleum products is highly likely to bounce back in the light of rising demands in the travel sector that had been suppressed due to the COVID-19 pandemic and the shut down of global petroleum refineries.\u201d \u201cPX (paraxylene), a major petrochemical product of a refinery, should also improve as apparel and downstream demand recovers.\u201d<\/span><\/p>\n <\/p>\n They also emphasized, \u201cAs COVID-19 vaccines are being widely rolled out, global petroleum supply and refining margins will show markedly upward trends, provided that there is a further upturn in global freight traffic and travel.\u201d<\/span><\/p>\n <\/p>\n 02 |<\/span> Forming an EV battery JV with Ford is a strong boost <\/span><\/strong><\/p>\n <\/p>\n SK Innovation and Ford\u2019s decision of forming an EV battery joint venture is definitely a good news that raised the market\u2019s expectation. <\/span><\/p>\n <\/p>\n In a report on the 25th, a few days after the announcement of SK Innovation and Ford\u2019s JV, Lee Anna, a researcher at EBEST Investment & Securities, said, \u201cWe look forward to SK Innovation\u2019s aggressive investment in EV batteries business in the future.\u201d Lee also predicted, \u201cSK Innovation’s EV battery business will be able to realize its first break-even point (BEP) in 2022, and then hit middle single digit profit in 2023, and high single digit profit in 2024.”<\/span><\/p>\n <\/p>\n Researcher Jeon Yoo-jin of Hi Investment & Securities assessed the fair value of SK Innovation’s EV battery business at KRW 11.2 trillion (30 times the 2021-2022 EBITDA) in a report dated May 26th<\/sup>. She explained, “In the EV battery market, where the oligopoly will become more pronounced around the top-tier in the future, SK Innovation has demonstrated its ability to acquire new major global OEMs (establishment of a JV with Ford, etc.).” In addition, \u201cAs SK Innovation has clearly demonstrated its EV battery business capabilities with large-scale orders and making alliances, we expect the company’s global market share to expand rapidly.\u201d<\/span><\/p>\n <\/p>\n In a report on May 27th<\/sup>, researcher Noh Woo-ho of Meritz Securities predicted, \u201cThe annual average growth rate of SK Innovation’s EV battery business from 2021 to 2023 will be 58%, the highest among Korean battery makers.\u201d \u201cThe company\u2019s battery business will gain profit in the second quarter of 2022,\u201d he added.<\/span><\/p>\n <\/p>\n There are also some highlights in Ford\u2019s presentation for investors on May 26th<\/sup> (US local time) that can bring positive effects on SK Innovation\u2019s EV battery business, directly and indirectly. Ford announced that it will boost investment for electrification, including battery development, to more than $30 billion by 2025. This amount of investment is about one-third more than that of the previous plan revealed earlier this year, which was USD 22 billion.<\/span><\/p>\n <\/p>\n Moreover, Ford outlined a plan to produce its own battery. The automaker expects its battery demand to reach 240 GWh per year globally by 2025, with 140GWh for the U.S. market. To meet this demand, obviously the giant automaker has to secure more EV battery facilities. Accordingly, Ford\u2019s decision to form BlueOvalSK, a JV with SK Innovation \u201cto manufacture battery cells and arrays at two plants in the U.S. for future Ford and Lincoln vehicles\u201d can definitely help the company to boost its battery production<\/span><\/p>\n <\/p>\n Meanwhile, Ford’s F-150 Lightning electric pickup Truck, which will be equipped with SK Innovation’s EV battery, was reported to have hit more than 70,000 pre-orders in about one week after being unveiled on May 19th<\/sup>. <\/span><\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" 01 | Good performance is expected to continue in the next quarter IBK Securities\u2019 analyst, Jeon Chang-hyeon predicted in a report dated May 24th that \u201cThis year, SK Innovation\u2019s oil refining business will bounce back, while its battery business will continue to grow further.\u201d \u201cSK Innovation\u2019s refining business, which was dragged down by … Read more<\/a><\/p>\n","protected":false},"author":564,"featured_media":5685,"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":[3,347],"tags":[35,486,235,472,487,15],"class_list":["post-5679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-insight","category-trend_report","tag-battery","tag-blueovalsk","tag-ev","tag-ford","tag-jv","tag-sk-innovation"],"acf":[],"_links":{"self":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/5679","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\/564"}],"replies":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/comments?post=5679"}],"version-history":[{"count":7,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/5679\/revisions"}],"predecessor-version":[{"id":5691,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/posts\/5679\/revisions\/5691"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media\/5685"}],"wp:attachment":[{"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/media?parent=5679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/categories?post=5679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/askinno.com\/global\/wp-json\/wp\/v2\/tags?post=5679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n\n\u25a0 Related article <\/strong>
\n– SK Innovation and Ford signed an MOU to form EV battery joint venture in USA <\/a>
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