Q3 2024 SK Innovation Co Ltd Earnings Call Transcript
Key Points
- SK Innovation Co Ltd (XKRX:096770) successfully completed its merger with SK E&S, which is expected to strengthen its energy portfolio and enhance competitiveness in the global market.
- The company announced corporate value enhancement plans targeting a 10% ROE and a 35% total shareholder return by 2027.
- Despite internal and external uncertainties, SK Innovation reached break-even on an operating profit basis due to improved profitability and reconciliation activities with customers.
- The battery business showed improvement in profitability, with a turnaround in quarterly profit driven by cost structure improvements and client payments.
- SK Innovation plans to leverage synergies from its integrated LNG value chain to maintain competitive fuel supply and generate stable profits.
- The company's total sales declined by KRW1,142.2 billion quarter-on-quarter due to weaker sales from the refinery business driven by lower oil prices.
- Operating profit fell by KRW377.5 billion quarter-on-quarter, resulting in a loss of KRW423.3 billion, primarily due to inventory-related losses and weaker petrochemical spreads.
- The petroleum business faced a challenging macroeconomic backdrop, with decreased refining margins and inventory-related losses leading to a significant drop in operating profit.
- The battery business experienced a decline in revenue due to a downward trend in battery ASP guided by metal price declines.
- The materials business saw its losses widen due to a decline in sales volume to major customers, although gradual improvement is expected in the fourth quarter.
Good morning. We will now start the 3Q earnings conference call for SK Innovation. Good morning. I am [Chung Soo Yung] from the IR team at SK Innovation. Thank you for joining the company's third quarter 2024 earnings presentation. I have with me, SK Innovation CFO, Kim Jin-Won; Lee Woo-Hyun, Head of IR; and the members of management from each business subsidiary.
For the agenda today. CFO, Kim Jin-Won will first run through the companywide business results for the third quarter followed by presentations from each of the officers of each business vision, after which we will have a Q&A session.
Please note that the earnings we're presenting today have not yet been audited by the external auditor and thus are subject to change upon the review.
With that, I will invite CFO, Kim Jin-Won to present the third quarter performance.
Good morning. I am Kim Jin-Won, CFO of SK Innovation. Allow me to start
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
