SK Innovative Chemicals Experiences a Significant Surge in Profits

South Korea: SK Innovation, based in South Korea, has released its Q1 financial report, revealing that the operating profit of its chemical business rose to 108.9 billion won, a substantial increase of 97.3 billion won from the previous quarter's figures in 2022. Additionally, the chemical sales for the quarter were reported to be 2.5 trillion won.

According to the company's report, the polymer business saw a rise in gross profit for both Polyethylene and Polypropylene. Polyethylene gross profit increased 14% quarter-on-quarter to $255 per tonne, while Polypropylene gross profit increased by 14% year-on-year to $287 per ton. In the aromatics industry, Paraxylene gross profit rose by 12.7% quarter-on-quarter to US$345 per ton and Benzene gross profit increased by 57.5% quarter-on-quarter to US$241 per ton. The company anticipates improved gross margins in the second quarter for Paraxylene in the chemicals business, whereas Polyethylene and Polypropylene margins are expected to continue to grow due to strong domestic demand in China.

The lubricants business saw a decline in operating profit of 9.2 billion won in the current quarter due to amplified sales competition and lower average exchange rates. Despite the increase in oil prices, the company anticipates steady growth in the lubricants business as the global supply-demand balance tightens after the driving season. The cost burden may increase due to higher oil prices, but it is expected to be manageable.