Fuel processing buoys SK Corp. during split

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Fuel processing buoys SK Corp. during split

SK Corp., Asia’s fourth-largest oil refiner, said second-quarter profits rose 66 percent on higher returns from processing crude oil into fuel.
Net income rose to 486 billion won ($532 million) in the three months ended June 30 from 293 billion won a year earlier, the Seoul-based company, which this month split into two, said in a statement yesterday. Operating profit, or sales minus the cost of goods sold and administrative expenses, rose 30 percent to 399.3 billion won, while sales advanced 19 percent to 6.85 trillion won. The so-called complex refining margin, or profit from processing crude oil into fuels, surged 43 percent to $11.21 a barrel in the second quarter from the first three months of the year, according to data provided by Merrill Lynch & Co.
SK Corp. said on April 11 that it will split into holding and operating companies. The two new companies, SK Holdings Co. and SK Energy Co., will be listed on the Korea Exchange today.
“The stock still has room to rise as refining margins are good,” said Cho Min-keon at Kyobo Investment Management Co.
The reorganization will make the company “cleaner” because “it will be more difficult for affiliates to support each other,” he said. Bloomberg
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