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SK Innovation Q2 losses widen on weak oil prices, strong won

Published: 31 Jul. 2025, 17:16 Updated: 31 Jul. 2025, 17:48

This undated file photo shows SK Innovation's petrochemical plant in Ulsan. [YONHAP]

SK Innovation, Korea's leading refiner, said Thursday its second quarter net losses had widened from a year earlier, weighed down by falling oil prices and a strong won.

In the three months ending June 30, net losses deepened to 1.03 trillion won ($743.3 million) from 639.7 billion won in the same period last year, the company said in a regulatory filing.

“The net result was affected by higher financial costs, declining oil prices and the won's appreciation against the dollar, which lowered the valuation of dollar-denominated crude inventories,” a company spokesperson said.

Operating losses also expanded to 417.6 billion won in the second quarter from 45.8 billion won a year ago.

Sales, however, increased 2.7 percent on year to 19.3 trillion won from 18.8 trillion won.

Looking ahead, the company expects improved refining margins, reduced U.S. tariff risks following negotiations with trade partners and increased battery shipments to Europe to support a rebound in third quarter earnings.

SK Innovation also operates SK On, its battery unit.

On Wednesday, SK Innovation announced the merger of SK On and SK Enmove, a provider of EV lubricants and thermal management solutions, as part of its business reorganization plan.

From January to June, net losses widened to 1.16 trillion won from 737.3 billion won in the year-ago period.

The refiner swung to an operating loss of 462.2 billion won in the first half from an operating profit of 578.89 billion won a year ago. Sales rose 7.4 percent to 40.45 trillion won from 37.65 trillion won.

Yonhap