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SK Innovation (096770) investor relations material
SK Innovation Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved a turnaround in operating profit, moving from a loss of KRW 417.6 billion in Q2 to a profit of KRW 573.5 billion in Q3 2025, driven by strong refining and E&S performance.
Signed a 1 GWh ESS supply agreement with Flatiron Energy Development, securing up to 7.2 GWh supply rights through 2030 and expanding LFP battery portfolio.
SK On and SK Enmove merger effective November 1, 2025, expected to strengthen financials and create new business synergies, including immersion cooling and battery package businesses.
Secured first mass production and supply of LFP batteries, diversifying the product lineup.
Financial highlights
Q3 sales rose KRW 1,226.6 billion QoQ to KRW 20,533.2 billion, driven by refinery and petrochemical revenue growth.
Operating profit turned positive at KRW 573.5 billion, up KRW 991.1 billion QoQ, due to higher crude prices and refining margins.
EBITDA rose to KRW 1,366.8 billion from KRW 379.2 billion in the previous quarter.
Profit before tax swung from a loss of KRW 1,260.8 billion to a profit of KRW 69.0 billion QoQ.
Non-operating loss narrowed to KRW 504.5 billion, with FX-related and product derivative losses reduced.
Outlook and guidance
Refining margins expected to remain firm due to OPEC+ production, geopolitical risks, and seasonal factors.
Battery business anticipates continued European sales growth but U.S. sales may decline due to subsidy removal and tariffs; will accelerate ESS business expansion.
Lubricants demand expected to soften in Q4 due to seasonality.
Petrochemical market to remain weak amid U.S.-China trade conflict, with focus on optimizing capacity and operations.
Capex for 2026 projected to be about 50% lower than 2025 as major investments conclude.
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