SK Discovery (006120) Q4 2024 earnings summary

Executive summary

• Revenue for FY2024 was KRW 9.04 trillion, up slightly from KRW 8.94 trillion in FY2023, with the gas business as the largest contributor.

• Operating income declined to KRW 173 billion from KRW 257 billion in the prior year, reflecting margin pressure and increased costs.

• Net income attributable to owners of the parent dropped sharply to KRW 25.2 billion from KRW 191 billion, mainly due to higher finance costs and lower equity method gains.

• Total assets increased to KRW 15.08 trillion, with significant investments in property, plant, and equipment.

• The group maintained a strong cash position, ending the year with KRW 1.38 trillion in cash and cash equivalents.

Financial highlights

• Gross profit margin was 11.7%, down from 12.5% in FY2023.

• EBITDA and EBIT margins declined, with operating margin at 1.9% versus 2.9% last year.

• EPS for ordinary shares was KRW 1,281, a significant decrease from KRW 9,699 in FY2023.

• Dividends per share were maintained at KRW 1,700 for ordinary shares.

• Debt ratio increased to 112% from 85% last year, reflecting higher borrowings.

Outlook and guidance

• Management expects continued revenue growth in the gas and green chemicals segments, but margin pressure is likely to persist due to raw material cost volatility.

• Ongoing investments in renewable energy and biopharma are expected to support long-term growth.

• The group plans to maintain a progressive dividend policy and continue share buybacks for shareholder returns.