South Korea · Delayed Price · Currency is KRW SK Innovation Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 delivered strong revenue and operating profit growth, led by lubricants and battery segments, despite significant non-operating losses from derivatives and impairments. Major restructuring and cost reduction initiatives are expected to drive further profitability, with ongoing focus on energy transition and supply chain resilience.
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Q1 2026 delivered strong revenue and profit growth, driven by higher energy prices, inventory gains, and LNG project milestones. Battery and ESS businesses improved, with strategic wins and narrowed losses, while ongoing geopolitical risks and restructuring efforts shape the outlook.
Fiscal Year 2025
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Q4 2025 saw revenue and profit declines due to weaker crude prices and U.S. EV subsidy removal, with significant battery asset impairments impacting results. The company is focusing on electrification, LNG expansion, and portfolio rebalancing, with no dividend for 2025 and a strong emphasis on cost optimization and financial stability in 2026.
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Q3 saw strong revenue and profit growth, led by refining and cost efficiencies, while the battery segment faced headwinds from U.S. tariffs and EV market shifts. The SK On–SK Enmove merger and ESS order wins are set to drive future synergies and financial stability.
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Q2 2025 saw revenue decline and operating losses due to weak refining and petrochemical performance, while the battery segment grew strongly but faces U.S. policy headwinds. Major capital raising and a merger between SK On and SK Enmove aim to drive future growth and financial stability.
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Q1 2025 saw revenue growth from the SK Innovation E&S merger, but operating profit declined due to weak margins in key segments. Major battery supply deals and oil discoveries support future growth, while financial soundness is being addressed through reduced CapEx and portfolio rebalancing.
Fiscal Year 2024
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Q4 2024 saw revenue and operating profit rise QoQ, driven by the SK E&S merger and improved refining margins, despite non-operating losses from FX and other expenses. The company expects continued uncertainty in 2025 but projects growth in battery and E&P, with CapEx set at KRW 6 trillion.
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Q3 saw operating losses from weak oil and petrochemical markets, offset by improved battery and lubricant segments. The merger with SK E&S strengthens the energy portfolio, while 2025 guidance points to lower CapEx and a focus on LNG and battery growth.
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Q2 2024 saw revenue and operating profit decline due to weak battery and refining margins, while a planned merger with SK E&S aims to deliver KRW 2.2 trillion in annual EBITDA synergies by 2030. Battery and E&P segments faced losses, but cost control and portfolio diversification are key focuses.