SEOUL:South Korea’s SK Innovation Co Ltd reported a surprise operating loss of ₩45 billion (US$32 million) for Q1 2025, reversing a ₩625 billion profit from the same period last year and missing analyst expectations of a ₩393 billion profit.
The energy conglomerate attributed the downturn to weaker global oil prices and lower refining margins, despite improved performance in its battery division. Refining profits fell amid global economic slowdown concerns, the easing of OPEC+ output cuts, and rising production from Africa and the Middle East.
However, the company expressed optimism for Q2, expecting refining margins to improve with the start of the driving season and increased cooling demand.
Its battery arm, SK On, recorded a narrower operating loss of ₩299 billion and is projecting stronger sales in North America, supported by new supply deals with automakers such as Nissan and Slate.
Still, challenges remain. Kia’s EV target cut and uncertainties tied to US tariffs may weigh on future performance.
SK Innovation’s Q1 revenue rose 12.2% year-on-year to ₩21.1 trillion, though shares fell 2.5% ahead of the announcement and are down nearly 16% year-to-date.
