SK Innovation sees operating profit plunge by 57 percent

SK Innovation, the holding company of SK Group’s petrochemical affiliates, said its operating profit for the third quarter was cut by more than a half due to weak refining margins.

The holding company of the nation’s largest refiner, SK Energy, said in a regulatory filing that its operating profit for the July to September period was 382.6 billion won ($360 million), down 56.7 percent from a year earlier’s 883.4 billion won. The company blamed weak refining margins and the stronger Korean won, despite robust market conditions in the petrochemical sector and improved profitability in the lube based oil business.

Sales for the third quarter were down 14.1 percent on-year to 15.85 trillion won as a result of weaker demand in the Southeast Asia market and also regular maintenance of refining facilities, SK Innovation said.