SK Innovation Co., Ltd.

Company Background

SK Innovation is a leading oil and chemical company in South Korea, and a core business of the SK group, the country's third-largest conglomerate. It deals with a wide range of businesses, from petroleum development to batteries and information electronics materials. It has also extended its efforts to the development of nonconventional energy resources, such as shale-derived resources.

The company's origins date back to the establishment of Korea Oil, the country's first oil refining company, in 1962. In addition to the business of its own, SK Innovation has widened its business through its subsidiaries. These include: SK Energy for oil refinery and wholesale; SK Lubricants for production of lubricating oil for leading automakers worldwide, including BMW of Germany; and SK Global Chemical for chemical products.

The company is engaged in a large-scale project in the U.S. state of Oklahoma, where it has acquired a stake in an oil producing field. As the first attempt ever among South Korean businesses, the company is preparing to produce oil and gas from the field's shale layers. The company expects the production of shale-derived energy to eventually reach about 15% of total capacity in the field.

The company is also actively involved in new businesses. It has signed with Chinese businesses, including a leading automaker, to form a joint venture in China to produce battery packs for electric vehicles, with a capacity target of 20,000 units by 2017.

In addition, SK Global Chemical has agreed with Saudi Basic Industries to launch a joint effort to produce and market Nexlene, a high-performance polyethylene originally developed using SK's own technology.

Business Summary

SK Innovation Co., Ltd. engages in the development and production of petroleum products. It operates through the Petroleum Development and Battery Businesses. The Battery business provides cell, module, pack, and battery management system. The company was founded on July 3, 2007 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2022	KRW	USD
Revenue	78,056.93B	60,410.83M
Gross Profit	6,710.55B	5,193.51M
Operating income	3,917.34B	3,031.75M
Income before tax	2,857.90B	2,211.82M
Net income	1,569.02B	1,214.31M
EBITDA	5,710.49B	4,419.54M
Diluted EPS	18,251.89	14.12
Dividends Per Share	--	--
Total Assets	67,218.92B	53,158.49M
Total liabilities	43,976.61B	34,777.86M
Total equity	19,651.62B	15,541.02M
Operating cash flow	374,419.02M	289.77M
	Currency in KRW	Currency in USD

Historical Data

KRW | USD

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	54,216.52B	49,306.93B	34,549.94B	46,853.41B	78,056.93B
Gross Profit	3,903.87B	2,962.99B	-327,570.28M	4,181.29B	6,710.55B
Operating income	2,103.16B	1,113.64B	-2,420.28B	1,741.67B	3,917.34B
Income before tax	2,237.35B	443,257.63M	-2,730.76B	381,676.71M	2,857.90B
Net income	1,638.07B	143,410.34M	-2,186.28B	248,343.09M	1,569.02B
EBITDA	3,029.78B	2,321.91B	-1,053.33B	3,255.41B	5,710.49B
Diluted EPS	--	-382.15	-24,267.63	3,328.82	18,251.89
Dividends Per Share	7,545.70	2,829.63	0	0	--
Total Assets	35,853.38B	39,534.50B	38,498.14B	49,544.94B	67,218.92B
Total liabilities	16,679.12B	21,321.28B	23,039.68B	29,924.24B	43,976.61B
Total equity	18,122.63B	17,468.08B	14,539.97B	17,310.85B	19,651.62B
Operating cash flow	1,751.33B	1,660.47B	2,847.20B	-539,906.89M	374,419.02M

	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022
Revenue	49,264.54M	42,280.57M	29,282.39M	40,914.32M	60,410.83M
Gross Profit	3,547.30M	2,540.76M	-277.62M	3,651.27M	5,193.51M
Operating income	1,911.06M	954.94M	-2,051.28M	1,520.89M	3,031.75M
Income before tax	2,033.00M	380.09M	-2,314.42M	333.29M	2,211.82M
Net income	1,488.45M	122.97M	-1,852.95M	216.86M	1,214.31M
EBITDA	2,753.04M	1,991.03M	-892.74M	2,842.76M	4,419.54M
Diluted EPS	--	-0.32	-20.56	2.90	14.12
Dividends Per Share	6.85	2.42	0	0	--
Total Assets	32,132.44M	34,186.08M	35,439.69M	41,678.18M	53,158.49M
Total liabilities	14,948.13M	18,436.83M	21,209.31M	25,172.86M	34,777.86M
Total equity	16,241.83M	15,104.91M	13,384.86M	14,562.23M	15,541.02M
Operating cash flow	1,591.37M	1,423.85M	2,413.11M	-471.46M	289.77M

Valuation Measures

Dec 2022
PER	8.31
ROA	2.68%
ROE	8.48%
Operating margin	5.01%
Profit margin	2.01%

Management

President, Chief Executive Officer & Director: Jun Kim
Chief Financial Officer: Yang-Seob Kim
Head-Research & Development: Il-Soo Kim
Head-Compliance Support: Byung-Rae Lee
Chairman-Executive Board: Tae-Won Choi

Shareholders

SK, Inc. (35.4%)
National Pension Service of Korea (7.7%)
SK Innovation Co., Ltd. (5.5%)
The Vanguard Group, Inc. (1.8%)
Samsung Asset Management Co., Ltd. (1.4%)
BlackRock Fund Advisors (1.2%)
Norges Bank Investment Management (1.1%)
ENEOS Holdings, Inc. (0.9%)
Mirae Asset Global Investments Co., Ltd. (0.8%)
Dimensional Fund Advisors LP (0.8%)

Contact Details

Website:http://www.SKinnovation.com
Address: SK Building, 26 Jong-ro, Seoul, 03188, South Korea
Phone: +82.2.2121.5114

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Competitors

HD HYUNDAI CO.,LTD.
TotalEnergies SE
PetroChina Company Limited Class H
Exxon Mobil Corporation
Shell Plc
Chevron Corporation
BP p.l.c.
China Petroleum & Chemical Corporation Class H
Saudi Arabian Oil Co.
GS Holdings Corp.
S-Oil Corporation
Neste Corporation
Formosa Chemicals & Fibre Corporation
FREYR Battery
Electrovaya Inc.
CT property Co., Ltd.
ISU CHEMICAL CO. LTD.
SES AI Corporation Class A
STR Holdings, Inc.
JBM Auto Limited
E1 Corporation
Elkem ASA
NOVONIX Ltd
SEOWONINTECH Co., Ltd.
SK Discovery Co. Ltd.
SK Gas Co., Ltd.
Top Material Co., Ltd.
Vulcan Energy Resources Ltd.

Last Updated on 26 Sep, 2023