(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] SK Innovation Reports Earnings Shock for Q2 as SK On Faces Record Loss Amid Prolonged EV Sales Slump.

SK Innovation's Q2 earnings fell short of market expectations, largely due to SK On, its battery subsidiary, posting its largest-ever quarterly loss.

The company announced on August 1 that it recorded Q2 revenue of 18.8 trillion won and an operating loss of 45.8 billion won. While revenue increased by 0.4% year-on-year, profitability indicators showed a return to losses after three consecutive profitable quarters. The refining sector, which has the largest share, saw reduced profits due to falling refining margins, and profits from petrochemicals, lubricants, and oil development also decreased. Losses in the battery and materials businesses grew even larger.

SK On reported Q2 revenue of 1.55 trillion won and an operating loss of 460.1 billion won, marking its 11th consecutive quarter of losses. Despite receiving 111.9 billion won in production tax credits from the U.S. Inflation Reduction Act (IRA), the loss reached an unprecedented level. This was attributed to lower global plant utilization rates and increased fixed costs from the new Hungarian plant.

The company emphasized its goal to achieve profitability in the second half of the year by improving plant utilization. SK Innovation also plans to merge with SK Trading International in November, aiming to achieve profitability solely in its battery business. However, specific projections for plant utilization were not provided.

 

 

 

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