SK Energy Petrochemical biz marks record-breaking performance

24 Jul '09

4 min read

• Petrochemical business marked the record-breaking quarterly performance, recording revenue of KRW 2,544.8 billion, a slight YoY decrease, but operating profit KRW 258.7 billion, a 54% YoY increase and the largest quarterly figure in company history.
• Rising demand from China, following its government's new economic stimulus package, and delay in facility expansions coming in from the Middle East and China contributed to the record-high quarterly performance.
• SK Energy forecasts the new Middle Eastern and Chinese capacity to fully impact the market at the end of the 3rd quarter, SK Energy will flexibly adapt to these conditions by diversifying export markets, securing stable sales networks and strengthening risk management strategies.

Exploration and Production (E&P)
• E&P business continued to post sound performance in the quarter, reporting KRW 151.1 billion in revenue and KRW 78 billion in operating profit, 38% and 23% YoY increases respectively.
• Increase in average sales price due to rising crude oil price and increase in daily production volume by 400 barrels from major blocks such as Peru 88 and Brazil BMC-8 contributed to the favorable E&P earnings.

Lubricants
• Lubricant business recorded revenue of KRW 246.7 billion and operating loss of KRW 73.6 billion, primarily due to weak demand from economic slowdown and declining base oil prices.
• The business forecasts the improved profitability from the 3rd quarter, driven by the turnaround of base oil price and rise in new automobile sales.
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