[Click eStock] SK Innovation, Strong Refining Sector Expected in Q2

[Asia Economy Reporter Park So-yeon] Yuanta Securities forecasted that SK Innovation will record an operating profit of 1.6 trillion KRW in the second quarter of this year.

According to FN Guide on the 9th, Yuanta Securities recently released a report on SK Innovation, predicting sales of 21.6 trillion KRW and an operating profit of 1.6 trillion KRW in the second quarter of this year.

The estimated operating profit represents a 215% increase compared to 506.5 billion KRW in the same period last year. It is similar to the strong performance of 1.6 trillion KRW in the first quarter, which benefited from rising oil prices. By segment, refining is expected to generate 1.3 trillion KRW, petrochemicals 43.5 billion KRW, lubricants 216.6 billion KRW, resource development 267 billion KRW, and batteries are forecasted to show a loss of 236.2 billion KRW.

Researcher Hwang Kyu-won stated, "The characteristics of the second quarter include the strong performance of the refining sector and the reduction of losses in the battery segment." He added, "SK Innovation has been excluded during the global oil companies' stock price revaluation period," explaining that "despite the expansion of market share in the battery sector, concerns over losses remain." He described this as "excessive."

The expected performance for 2022 includes sales of 77.9 trillion KRW, operating profit of 4.3 trillion KRW, and net income attributable to controlling shareholders of 2.6 trillion KRW.

Kiwoom Securities also recently forecasted in a report that SK Innovation's operating profit for the second quarter of this year will be 1.28 trillion KRW, marking a 152.7% increase compared to the same period last year and recording an earnings surprise.

Due to the recent sharp rise in oil and gas prices, the operating profit from the oil development business, which had been below 200 billion KRW annually on average over the past seven years, is expected to surge to 890.7 billion KRW this year.

This content was produced with the assistance of AI translation services.