SK Innovation Beats Q1 Profit Estimates, Warns of Slow Refining Recovery

SK Innovation, the parent company of South Korea's largest refiner SK Energy, reported a significant turnaround in its first-quarter financial results, posting an operating profit of 2.2 trillion won ($1.48 billion). This performance markedly exceeded analyst forecasts of 1.4 trillion won and contrasted sharply with a 30 billion won loss during the same period last year. Despite these strong figures, the company cautioned that the normalization of production and logistics within its refining sector will require considerable time, even if geopolitical tensions in the Middle East are resolved. Meanwhile, its battery subsidiary, SK On, continues to face challenges due to slowing electric vehicle demand, although it narrowed its operating loss to 349 billion won. SK On aims for long-term profitability through European sales growth and expansion in North American energy storage systems. The company recently laid off nearly 1,000 employees at its Atlanta plant amid these adjustments. Overall revenue for the quarter rose 15.2 percent to 24.2 trillion won, reflecting resilient performance in the core refining business despite broader market uncertainties and supply chain complexities.