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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 2020 KRWUSD
Revenue34,164.52B28,955.74M
Gross Profit-478,442.04M-405.49M
Operating income-2,569.11B-2,177.42M
Income before tax-2,842.16B-2,408.84M
Net income-2,267.74B-1,922.00M
EBITDA-1,202.16B-1,018.87M
Diluted EPS-25,728.69-21.80
Dividends Per Share00
Total Assets38,498.14B35,439.69M
Total liabilities23,039.68B21,209.31M
Total equity14,539.97B13,384.86M
Operating cash flow2,847.20B2,413.11M
Currency in KRWCurrency in USD

Historical Data

 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 39,520.53B 46,162.65B 54,216.52B 49,306.93B 34,164.52B
Gross Profit 4,911.47B 5,337.81B 3,903.87B 2,962.99B -478,442.04M
Operating income 3,228.33B 3,221.78B 2,103.16B 1,113.64B -2,569.11B
Income before tax 2,337.98B 3,223.67B 2,237.35B 443,257.63M -2,842.16B
Net income 1,671.33B 2,105.93B 1,638.07B 143,410.34M -2,267.74B
EBITDA 4,142.69B 4,121.84B 3,029.78B 2,321.91B -1,202.16B
Diluted EPS 17,934.25 22,574.46 -- -405.16 -25,728.69
Dividends Per Share 6,400 8,000 8,000 3,000 0
Total Assets 32,581.33B 34,250.14B 35,853.38B 39,534.50B 38,498.14B
Total liabilities 14,276.28B 14,940.81B 16,679.12B 21,321.28B 23,039.68B
Total equity 17,103.15B 18,085.77B 18,122.63B 17,468.08B 14,539.97B
Operating cash flow 3,518.19B 2,188.61B 1,751.33B 1,660.47B 2,847.20B
 Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020
Revenue 34,063.86M 40,833.46M 49,264.54M 42,280.57M 28,955.74M
Gross Profit 4,233.33M 4,721.59M 3,547.30M 2,540.76M -405.49M
Operating income 2,782.59M 2,849.85M 1,911.06M 954.94M -2,177.42M
Income before tax 2,015.17M 2,851.52M 2,033.00M 380.09M -2,408.84M
Net income 1,440.57M 1,862.81M 1,488.45M 122.97M -1,922.00M
EBITDA 3,570.70M 3,646.00M 2,753.04M 1,991.03M -1,018.87M
Diluted EPS 15.45 19.96 -- -0.34 -21.80
Dividends Per Share 5.51 7.07 7.26 2.57 0
Total Assets 26,975.76M 31,993.03M 32,132.44M 34,186.08M 35,439.69M
Total liabilities 11,820.07M 13,956.20M 14,948.13M 18,436.83M 21,209.31M
Total equity 14,160.58M 16,893.91M 16,241.83M 15,104.91M 13,384.86M
Operating cash flow 3,032.43M 1,935.95M 1,591.37M 1,423.85M 2,413.11M

Valuation Measures

Dec 2020
PER--
ROA-5.81%
ROE-14.16%
Operating margin-7.51%
Profit margin-6.63%

Key executives

  • President, Chief Executive Officer & Director: Jun Kim
  • Head-Finance: Jang-Woo Kim
  • Head-Research & Development: Il-Soo Kim
  • Head-Compliance Support: Byung-Rae Lee
  • Chairman-Executive Board: Tae-Won Chey

Shareholders

  • SK Inc. (33.4%)
  • SK Innovation Co., Ltd. (10.3%)
  • National Pension Service of Korea (8.3%)
  • The Vanguard Group, Inc. (1.4%)
  • BlackRock Fund Advisors (1.3%)
  • Mirae Asset Global Investments Co., Ltd. (1.2%)
  • ENEOS Holdings, Inc. (0.9%)
  • Norges Bank Investment Management (0.9%)
  • Samsung Asset Management Co., Ltd. (0.8%)
  • BlackRock Asset Management North Asia Ltd. (0.3%)

Contact Details

Related Companies

  • SK E&P Co. Ltd.
  • SK Future Energy (Shanghai) Co., Ltd.
  • SK Battery Co., Ltd.
  • Happy Kium Co., Ltd.
  • Blue Dragon Energy Co., Ltd.
  • SK Innovation Insurance (Bermuda) Ltd.
  • SK New Energy (Jiangsu) Co., Ltd.
  • SK Battery Manufacturing Kft
  • SK Battery Hungary Kft
  • SK Battery America, Inc.
  • Sk Ie Technology Co., Ltd.
  • 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 Mobile Energy Corp.
  • SK Energy Co., Ltd.
  • SK Incheon Oil Co. Ltd.
  • SK Geocentric Co.
  • SK Lubricants Co., Ltd.
  • SK E&P America, Inc.
  • SK USA, Inc.
  • Sk Energy Co. Ltd. /Petroleum & Chemical Businesses/

Competitors

  • Hyundai Heavy Industries Holdings Co., Ltd.
  • Chevron Corporation
  • Exxon Mobil Corporation
  • Royal Dutch Shell Plc Class A
  • PetroChina Company Limited Class H
  • BP p.l.c.
  • TotalEnergies SE
  • China Petroleum & Chemical Corporation Class H
  • Saudi Arabian Oil Company (Saudi Aramco)
  • GS Holdings Corp.
  • S-Oil Corporation
  • Neste Corporation
  • Formosa Chemicals & Fibre Corporation
  • ISU CHEMICAL CO. LTD.
  • Electrovaya Inc.
  • Hubei Guochuang Hi-Tech Material Co ltd Class A
  • E1 Corporation
  • FREYR Battery
  • SEOWONINTECH Co., Ltd.
  • Shenzhen Senior Technology Material Co., Ltd. Class A
  • SK Discovery Co. Ltd.
  • STR Holdings, Inc.
Last Updated on 22 Oct, 2021

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