SK Innovation, South Korea's top oil refiner has announced a 6.5% increase in its Q2 profits from a year earlier, aided by better-than-expected results from its petrochemical business, as per Yonhap. Net profit reached 626 billion won (US$551 mln) on a consolidated basis in the April-June period, compared with a profit of 588 billion won a year earlier, the company said in a regulatory filing.
Operating income surged 12% on-year to reach 1.12 trillion won over the cited period, while sales dropped 21% year-on-year to reach 10.28 trillion won. The strong performance was boosted by its petrochemical business amid lower oil prices.
In 2014, SK Innovation swung to a loss, falling into the red for the first time in 37 years. Its earnings were hit hard in the fourth quarter as a sharp fall in oil prices hurt the value of its crude stockpiles and cracking margins. However, the company swung to a net profit in 2015 from a year earlier on improved cracking margins and reduced inventory losses.