Home / Knowledge / News / Textiles / SK Energy Petrochemical biz marks record-breaking performance
SK Energy Petrochemical biz marks record-breaking performance
24
Jul '09
SK Energy, Korea's leading energy provider, announced 2nd quarter earnings results for 2009. 2nd quarter revenue and operating profit decreased by 26% and 67% year-over-year(YoY) to stand at KRW 8,928.7 billion and KRW 177.6 billion respectively, while net income increased by 16% to KRW 301.4 billion from the same period 2008.

Revenue for the 2nd quarter declined by 26% YoY to KRW 8,928.7 billion due to a slowdown in the global marketplace and lower product prices caused by significantly lower crude oil prices.

In spite of the increased petrochemical and E&P earnings, SK Energy's operating profit for the 2nd quarter decreased by 67% YoY to KRW 177.6 billion, mainly due to weakness in the petroleum and lubricant businesses affected by depressed refining margins and reduced base oil margins respectively.

The quarter's net income increased by 16% YoY to KRW 301.4 billion, mainly due to foreign exchange gain from strategic foreign exchange risk management and higher equity method earnings from the improved earnings generated by SK Energy's subsidiaries, in particular SKEI, based in Singapore.

SK Energy's financial stability continued to strengthen in the last quarter despite challenging business environments. The company's debt-to-equity ratio decreased from 207% at the end of 2008 down to 184% at the end of 1st half this year. Net debt ratio of the company has also decreased from 85% to 77% for the same period.

Mr. Joon-Sung Choi, Head of Investor Relations and Controller at SK Energy, said, “Amid continued volatile business environment and global economic slowdown, SK Energy achieved rise in net income by 16% YoY due to the foreign exchange gain, in spite of drop in operating profits.” He added, “Although the business environment for the 2nd half of 2009 undoubtedly will be challenging, we are committed to maximizing our profits by implementing operational excellence and maintaining optimal utilization, supported by efficient and effective business and marketing strategies.”

Business Sector Performance:
Petroleum
• The revenue of petroleum business decreased by 30% YoY, to KRW 5,830.4 billion. The business experienced the first operating loss of KRW 68.3 billion since the 4th quarter of 2006, a main driver of the drop in operating profit of the company, is largely due to the sharp drop in simple and cracking refining margins.
• Refining margins dropped significantly quarter-on-quarter, from rising crude oil prices, relatively weak product prices caused by additional capacity from new refineries, and reduced demand for petroleum products.
• The business's export, however, showed strong results. The three light distillates – gasoline, diesel, and kerosene – export posted 45% increase YoY, to 18.9 million barrels in the quarter, while domestic sales of three light distillates in the quarter increased by only 7%, to 20.3 million barrels.

Petrochemical


Must ReadView All

Courtesy: Business wire

Textiles | On 28th Jul 2017

Taiwan launches new products at Outdoor Retailer show

The Taiwan External Trade Development Council (TAITRA) hosted the...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Fashion | On 28th Jul 2017

Kering’s first half consolidated revenue up 28.2%

Kering has announced a consolidated revenue of €7,296.2 million for...

Interviews View All

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Spokesperson
Hugo Boss

'Hugo Boss works with carefully selected sourcing partners'

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X