SK Energy, Korea's key energy provider, has reported results for third quarter, wherein the performance of its petrochemical division has been spectacular. Q3 petrochemical sales increased by 75% YOY to KRW 3.29 trillion due to higher prices and increased sales volume. Interestingly, for the same period, operating profits dropped by 36% to KRW 75.5 bln. Olefin margins continued to be maintained at the same levels as Q2 due to reduced downstream demand and lower naphtha prices, Q3 operating profits rose by 75% yoy to KRW 733 bln by robust performance in the petroleum business resulting from full operation of the new upgrading facility and strong earnings from the E&P division. Q3 sales revenue increased by 115% yoy to KRW14.3 trillion, on stronger sales in the petroleum and E&P businesses, improved export sales and the continued rise in foreign exchange rate.
Unprecedented export sales of KRW 9.1 trillion were reported in the quarter, accounting for 64% of total sales. The 2.5 times increase yoy is attributed to increased export volume of light to middle distillate products from full operation of the No. 2 RFCC (Residue Fluid Catalytic Cracking), the company's new upgrading facility located in the Ulsan Complex. The 60,000 bpd RFCC unit has been running at full capacity since the end of June 2008.
27-Oct-08 
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