SK Innovation sales, profit lose energy in first quarter

SK Innovation, the nation’s leading energy company, said yesterday its first-quarter sales and operating profit both dropped compared to a year ago due to currency and oil price fluctuations.

The holding company of SK Energy, SK Global Chemical and SK Lubricants said sales were 18.1 trillion won ($16.3 billion), down 3.9 percent from a year earlier, while operating profit plunged 5.5 percent to 738 billion won.

But compared to the fourth quarter of 2012, SK Innovation said, operating profit increased 231.6 percent, thanks to an enhanced refining margin and increased demand for petroleum products and chemicals.

Net profit, however, was only 293 billion won, a 54.8 percent drop from a year ago. Its debt-to-equity ratio was 113 percent as of end of March, 6 percentage points higher that a year ago.