SK Group headquarters in Jongno District, Seoul / Korea Times file
SK Innovation said Monday it shifted to a net loss in the third quarter from a year earlier due mainly to decreased refining margins.
In the three months to September, Korea's leading refiner shifted to a net loss of 588.1 billion won ($428.86 million) from a net profit of 729.6 billion won a year ago, the company said in a regulatory filing.
"The mainstay petrochemical business posted losses (in the third quarter) as concerns over a global economic slowdown and lower demand from China drove down oil prices and refining margins," a company spokesperson said.
Lower demand for electric vehicle batteries also weighed on the quarterly results, he said.
SK Innovation holds an 89.52 percent stake in SK On, the country's third-largest car battery maker.
It also swung to an operating loss of 423.3 billion won in the September quarter from an operating profit of 1.56 trillion won a year ago. Sales fell 11.2 percent to 17.65 trillion won from 19.89 trillion won over the cited period, the filing said.
The company expected refining margins to improve in the fourth quarter on eased concerns over an economic downturn and growing battery demand for new 2025 models.
From January to September, the refiner shifted to a net loss of 1.33 trillion won from a net profit of 557.22 billion won during the same period of last year.
Operating profit plunged 92 percent to 155.56 billion won in the first nine months from 1.83 trillion won a year ago. Sales were down 4.2 percent to 55.31 trillion won from 57.76 trillion won. (Yonhap)
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