SK Innovation's battery business subsidiary, SK On, has turned a profit. This marks the second consecutive quarter of profit since its establishment; however, there was a loss when considering the battery business prior to the merger.
On the 31st, SK Innovation reported that it recorded revenue of 19.3066 trillion won and an operating loss of 417.6 billion won in its second-quarter results for this year. Revenue increased by 2.7% compared to the same period last year, while operating profit decreased by 810.9%.
By business segment, ▲ oil revenue was 11.1187 trillion won with an operating loss of 466.3 billion won, ▲ chemical revenue was 2.2686 trillion won with an operating loss of 118.6 billion won, ▲ lubricant revenue was 893.8 billion won with an operating profit of 134.6 billion won, ▲ oil development revenue was 341.7 billion won with an operating profit of 109 billion won, ▲ battery revenue was 2.1077 trillion won with an operating loss of 66.4 billion won, ▲ materials revenue was 19.5 billion won with an operating loss of 53.7 billion won, and ▲ SK Innovation E&S revenue was 2.5453 trillion won with an operating profit of 115 billion won.
The oil, chemical, and battery businesses, which experienced large operating losses, were affected by sluggish market conditions. Despite a recovery in refining margins, there were significant inventory valuation losses in oil. The chemical business continued to incur losses due to declining product spreads.
In the battery sector, there was an improvement in the operating rate of factories in the United States and Europe, along with increased sales volumes; however, an operating loss of 66.4 billion won was recorded, an improvement of 23.3 billion won compared to the previous quarter. Based on the SK On consolidated entity, a quarterly profit of 60.9 billion won was achieved.
The Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA) recorded 273.4 billion won in the second quarter, marking a 60% increase compared to the previous quarter. This is the largest amount on a quarterly basis, achieved as a result of timely responses to increased demand from U.S. customers.