South Korea’s SK Innovation reported a 532.5% year-over-year increase in third-quarter operating profit, reaching 3.07 trillion won ($2.3 billion), primarily due to soaring refining margins and a historic earnings boost from its lubricants division. Meanwhile, the company’s total revenue rose 39.7% to 28.77 trillion won in the July-September period.
SK Enmove, the lubricants arm of SK Innovation, achieved a record quarterly operating profit of 1.09 trillion won, exceeding its prior annual high of 1.07 trillion won from 2022. This growth was partly attributed to supply chain issues affecting global base oil availability, which improved profit margins.
SK Energy, the refining division, reported an operating profit of 1.03 trillion won, representing an increase of 117.7% compared to the same period last year. This rise was largely due to enhanced refining margins caused by geopolitical instability in the Middle East disrupting oil markets.
SK Innovation E&S experienced a significant rebound in earnings, with operating profit jumping 631.3% to reach 774.4 billion won. The recovery was driven by higher seasonal electricity demand, access to competitively priced LNG via long-term agreements, and early output from Australia’s Barossa gas field.
The petrochemical arm, SK geo centric, returned to profitability with 86.7 billion won in operating income, supported by expanded margins for paraxylene and benzene. In parallel, the oil exploration unit SK Earthon posted operating profit of 31.4 billion won, coinciding with the launch of production at the Golden Camel field within Vietnam’s Block 15-1/05.
Battery manufacturer SK On recorded an operating profit of 80.5 billion won on sales of 1.53 trillion won, continuing its restructuring process in response to fluctuating demand in the electric vehicle sector. The company is pivoting more aggressively towards energy storage systems, especially in North America, where increasing needs from AI data centers and grid enhancements are fueling interest.
According to Kim Young-kwang, SK On’s head of financial management, there has been a notable uptick in requests from American system integrators seeking details on battery specs, pricing, and long-term supply arrangements. The firm intends to repurpose current EV battery facilities in both South Korea and North America to produce ESS units, aiming to boost output without major new investments.
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