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Energy Minerals

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 2019 KRWUSD
Revenue49,876.53B42,768.99M
Gross Profit2,969.59B2,546.42M
Operating income1,269.29B1,088.41M
Income before tax319,172.91M273.68M
Net income-35,740.13M-30.64M
EBITDA2,477.56B2,124.50M
Diluted EPS-405.16-0.34
Dividends Per Share3,0002.57
Total Assets39,526.05B34,178.78M
Total liabilities21,316.43B18,432.64M
Total equity17,468.08B15,104.91M
Operating cash flow1,660.47B1,423.85M
Currency in KRWCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 48,356.32B 39,520.53B 46,162.65B 54,216.52B 49,876.53B
Gross Profit 4,113.72B 4,911.47B 5,337.81B 3,903.87B 2,969.59B
Operating income 1,979.56B 3,228.33B 3,221.78B 2,103.16B 1,269.29B
Income before tax 1,605.11B 2,337.98B 3,223.67B 2,237.35B 319,172.91M
Net income 944,798.75M 1,671.33B 2,105.93B 1,638.07B -35,740.13M
EBITDA 2,931.09B 4,142.69B 4,121.84B 3,029.78B 2,477.56B
Diluted EPS 8,744.55 17,934 22,574 -- -405.16
Dividends Per Share 4,800 6,400 8,000 8,000 3,000
Total Assets 31,359.83B 32,581.33B 34,250.14B 35,853.38B 39,526.05B
Total liabilities 14,313.49B 14,276.28B 14,940.81B 16,679.12B 21,316.43B
Total equity 15,889.74B 17,103.15B 18,085.77B 18,122.63B 17,468.08B
Operating cash flow 4,085.70B 3,518.19B 2,188.61B 1,751.33B 1,660.47B
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 42,725.01M 34,063.86M 40,833.46M 49,264.54M 42,768.99M
Gross Profit 3,634.66M 4,233.33M 4,721.59M 3,547.30M 2,546.42M
Operating income 1,749.03M 2,782.59M 2,849.85M 1,911.06M 1,088.41M
Income before tax 1,418.19M 2,015.17M 2,851.52M 2,033.00M 273.68M
Net income 834.77M 1,440.57M 1,862.81M 1,488.45M -30.64M
EBITDA 2,589.75M 3,570.70M 3,646.00M 2,753.04M 2,124.50M
Diluted EPS 7.72 15.45 19.96 -- -0.34
Dividends Per Share 4.24 5.51 7.07 7.26 2.57
Total Assets 26,744.98M 26,975.76M 31,993.03M 32,132.44M 34,178.78M
Total liabilities 12,207.15M 11,820.07M 13,956.20M 14,948.13M 18,432.64M
Total equity 13,551.44M 14,160.58M 16,893.91M 16,241.83M 15,104.91M
Operating cash flow 3,609.90M 3,032.43M 1,935.95M 1,591.37M 1,423.85M

Valuation Measures

Dec 2019
PER--
ROA-0.09%
ROE-0.20%
Operating margin2.54%
Profit margin-0.07%

Key executives

  • President, Chief Executive Officer & Director: Jun Kim
  • Head-Operational Support: Jong-Rin Park
  • Head-Finance: Jang-Woo Kim
  • Head-IT strategy & Support: Hae-Jin Yoo
  • Co-Secretary & Head-Compliance Support: Yoon-Wook Kim

Shareholders

  • SK Holdings Co., Ltd. (33.4%)
  • SK Innovation Co., Ltd. (10.9%)
  • National Pension Service of Korea (10.8%)
  • The Vanguard Group, Inc. (1.8%)
  • BlackRock Fund Advisors (1.3%)
  • Samsung Asset Management Co., Ltd. (1.3%)
  • Schroder Investment Management Ltd. (1.2%)
  • Norges Bank Investment Management (1.0%)
  • JXTG Holdings, Inc. (0.9%)
  • Dimensional Fund Advisors LP (0.8%)

Contact Details

Related Companies

  • SK Battery America, Inc.
  • SK ie technology
  • Dow Chemical Co. /Poly Vinylidence Chloride Bus/
  • SK GC Americas, Inc.
  • SK Battery Systems Co., Ltd.
  • Sk Lubricants Cop Ltd.
  • Sk Trading International Co., Ltd.
  • SK Incheon Petrochem Co., Ltd.
  • SK Incheon Oil Co. Ltd.
  • SK Global Chemical Co., Ltd.
  • SK Lubricants Co., Ltd.
  • SK E&P America, Inc.
  • Sk Energy Co. Ltd. /Petroleum & Chemical Businesses/

Competitors

  • Total SA
  • Chevron Corporation
  • Royal Dutch Shell Plc Class B
  • BP p.l.c.
  • Exxon Mobil Corporation
  • PetroChina Company Limited Class H
  • China Petroleum & Chemical Corporation Class H
  • GS Holdings Corp.
  • Saudi Arabian Oil Company (Saudi Aramco)
  • S-Oil Corporation
  • Neste Corporation
  • KOREA SHIPBUILDING & OFFSHORE ENGINEERING CO.,LTD.
  • Hyundai Heavy Industries Holdings Co., Ltd.
  • Formosa Chemicals & Fibre Corporation
  • ISU CHEMICAL CO. LTD.
  • Electrovaya Inc.
  • STR Holdings, Inc.
  • SHIN HEUNG ENERGY & ELECTRONICS Co., Ltd.
  • Hengdian Group DMEGC Magnetics Co., Ltd Class A
  • HeunguOil Co., Ltd.
  • Nordic Mining ASA
  • SK Gas Co., Ltd.
  • TechnipFMC Plc
Last Updated on 4 Jun, 2020

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