Announcement of 2020 results on the 29th… 4th quarter sales of 7,677.6 billion won, operating loss of 243.4 billion won
Major businesses such as petroleum, chemicals, and lubricants are out of stagnation due to Corona 19
First year of promoting growth based on financial story… Green-centered fundamental change promotion
[에너지신문] SK Innovation achieved trillions of sales for the first time ever, with sales of the battery business alone increased to 1.61 trillion won, more than doubled from 69.3 billion won a year ago, amid the stagnation of its flagship businesses due to the impact of Corona 19.
In the 2020 results announcement on the 29th, SK Innovation announced that in the fourth quarter of 2020, sales recorded 7.6 trillion won and an operating loss of 243.4 billion won. The battery business reached the highest quarterly sales with sales of 4792 billion won. As a result, SK Innovation recorded an annual sales of 34 trillion 1645 billion won and an operating loss of 2.568.8 billion won.
By business, in the fourth quarter of last year, the petroleum business recorded sales of 4,769.2 billion won and operating loss of 1925 billion won, while the chemicals business recorded sales of 1.69 trillion won, operating loss 46.2 billion won, and the lubricants business sales of 652 billion won and operating profit of 125.3 billion won. , The oil development business achieved sales of 14 billion won and operating profit of 1.6 billion won, respectively.
The most notable part is definitely the battery business. The battery business, the leading player in eco-friendly growth of SK Innovation, has reached a full-scale growth trajectory with annual sales of 1.61 trillion won, an increase of 919.9 billion won compared to the previous year’s annual sales (69.03 billion won). However, despite the continuous improvement in profitability, it recorded an operating loss of 108.9 billion won due to the initial cost of overseas plants.
SK Innovation analyzed that sales volume increased sharply due to stable operation of the first plant in Hungary and the plant in Changzhou, China, which started mass production in 2020, and that sales volume and profitability are improving due to early stabilization of overseas plants.
SK Innovation is expected to continue its sales growth as its Yancheng and Huizhou plants in China start mass-producing 20GWh from the first quarter of this year, with a total production capacity of 40GWh, which is about four times higher than the end of 2019.
In addition, the second plant in Hungary with a 9.8 GWh scale in the first quarter of 2022 and the third plant in the first quarter of 2024 was built in Georgia, the United States with a 9.8 GWh scale in the first plant in the first quarter of 2022 and the second plant with a 11.7 GWh scale. As the company plans to mass-produce the product from 1Q2023, earnings are expected to improve significantly.
SK Innovation aims to have a global battery production capacity of 85GWh by 2023 and more than 125GWh by 2025, and plans to continue aggressive investments in line with the rapid growth of electric vehicles by deciding to expand additionally by 25GWh or more from 100GWh, which was the target of 2025. .
In addition, the material business has been continuously expanding overseas facilities for separators. Currently, factories in Cheongju and Jeungpyeong, Chungcheongbuk-do, with a capacity of 530 million square meters, and factories in China with a size of 340,000 square meters, have been put into operation since the end of last year and have an annual capacity of 87,000 square meters. It has a production capacity. In addition, if overseas factories such as China and Poland are operated sequentially, the production capacity is expected to reach 1.37 billion ㎡ at the end of this year and 1.87 billion ㎡ in 2023.
Meanwhile, in 2020, SK Innovation decided not to pay dividends to improve its financial structure in a situation where earnings deteriorated due to Corona 19 and increased investment in new growth businesses, but shareholder-oriented management is an important value of SK Innovation. He said that it is establishing a mid- to long-term shareholder return plan in consideration of the corporate value through business.
SK Innovation President Kim Joon said, “The company’s new growth business is realizing tangible results even in the worst business environment ever experienced due to Corona 19. This year, the first year of the full-scale implementation of the Financial Story, Not only the business, but also the existing business, we will promote a total and fundamental innovation centered on green.”
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