SK Innovation announced on July 30 that it achieved a revenue of 29.15 trillion won and an operating profit of 3.49 trillion won for the second quarter of 2026. This marks an increase of 4.87 trillion won in revenue and 1.32 trillion won in operating profit compared to the previous quarter. Revenue rose by 49.9% year-on-year, and the company returned to profitability.
The strong operating profit in the second quarter was largely attributed to improved performance in its lubricants and battery businesses.
SK Enmove reported an operating profit of 691.9 billion won, an increase of 503.4 billion won from the previous quarter. The rise in margins for lubricant base oil, due to supply disruptions among major competitors in the Middle East, contributed to the growth in sales in key global markets.
SK On's battery business achieved an operating profit of 821.8 billion won, marking a turnaround from an operating loss of 1.17 trillion won in the previous quarter. This improvement was driven by increased sales in Asia, receipt of customer compensation, and a rise in tax credits under the U.S. Inflation Reduction Act (IRA).
Despite predictions from securities firms that SK On would be the only one of the three major battery companies to report a loss, it avoided this outcome and achieved the largest operating profit among the three, thanks to compensation received for contract cancellations from global automakers.
SK On stated, "In addition to the one-time effects of customer compensation, we benefited from cost reduction efforts, increased sales in Asia, and the rise in IRA Tax Credits, which contributed to our return to operating profit."
SK Energy, which operates in the refining sector, reported an operating profit of 651.2 billion won for the second quarter, with approximately 560 billion won attributed to inventory-related gains. The refining business continued to show solid performance in the second quarter, reflecting the lagging effects of rising oil prices and inventory effects.
However, following the signing of a memorandum of understanding (MOU) for peace between the U.S. and Iran in June, expectations of reduced geopolitical risks in the Middle East led to a decline in oil prices, resulting in a decrease of 632 billion won in operating profit compared to the previous quarter. Additionally, maintenance on some facilities in May and June contributed to a decline in operational efficiency.
SK Innovation explained, "The lagging effects and inventory-related gains from rising oil prices in April and May positively impacted SK Energy's performance, but the decline in oil prices at the end of the quarter reduced these gains, leading to a loss in June. During periods of falling oil prices, the costs of crude oil purchased at high prices are reflected with a delay, resulting in negative lagging and inventory effects, and potential losses from end-of-period inventory evaluations."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.