Loss of 2.16 trillion won in sales despite total sales of 34.
Achieved trillion-unit sales for the first time with annual battery sales of 1.6 trillion won
[투데이에너지 조대인 기자] SK Innovation recorded a negative growth of 30.7% compared to the previous year’s 49.356.9 billion won, with total sales of 34.16 trillion won last year, overlapping with the aftermath of sluggish demand caused by Corona 19 and deteriorating refining margins.
However, it was found that last year’s battery business sales increased more than double to 1.6102 billion won, compared to the previous year’s 690.3 billion won, contributing to making up for poor performance.
SK Innovation announced on the 29th that it recorded a deficit of KRW 7.67 trillion in sales, KRW 244.3 billion in operating loss, and KRW 246.8 billion in net income in the fourth quarter of last year through a disclosure by the Financial Supervisory Service.
In the fourth quarter of the battery business, sales reached KRW 479.2 billion, the highest in quarterly sales. Annual sales amounted to 34.16 trillion won and operating loss of 2.568.8 billion won.
SK Innovation’s battery business is expected to continue to grow in sales this year when overseas plants with an additional 20GWh production scale are fully operational in Yancheng and Huizhou, China, with a total production capacity of 40GWh, which is about four times higher than at the end of 2019.
△SK Innovation’s fourth quarter results
SK Innovation’s fourth quarter results for each business segment of last year were KRW 4.76 trillion, operating loss KRW 179.2 billion for the petroleum business, KRW 1.69 trillion in sales for the chemical business, KRW 46.2 billion in operating loss, and 652 billion KRW for the lubricant business. , Operating profit of 125.3 billion won, sales of oil development business of 14 billion won and operating profit of 1.6 billion won respectively.
In the case of the battery business, sales recorded KRW 477.2 billion, an increase of 2.2 times compared to KRW 225 billion in the same period last year.
However, despite the continuous improvement in profitability, the company posted an operating loss of 108.9 billion won due to the initial cost of overseas plants.
In the materials business, despite an increase in sales of lithium-ion battery separators (LiBS), operating profit fell by KRW 4.6 billion from the previous quarter to KRW 25.3 billion due to a drop in the exchange rate and initial fixed costs from the operation of new Chinese facilities.
△SK Innovation’s annual cumulative performance
SK Innovation’s annual performance for each business segment last year was 22,6,37.9 billion won in sales from the petroleum business, 2,222.8 billion won in operating losses, 7.54 trillion won in sales from the chemicals business, 121.2 billion won in operating losses, and 2 trillion won in sales from the lubricant business. Sales of the petroleum development business were KRW 3711.3 billion, operating profit of KRW 266.2 billion, sales of the oil development business of KRW 59.3 billion, operating loss of KRW 4.8 billion, sales of the battery business of KRW 1.61 trillion, operating loss of KRW 4265 billion, and the material business of KRW 125.9 billion.
The battery business, the leading player in eco-friendly growth of SK Innovation, climbed to a full-fledged growth trajectory with annual sales of KRW 1.61 trillion, an increase of KRW 919.9 billion from the previous year’s annual sales of KRW 690.3 billion.
Sales increased sharply due to stable operation of the Hungarian Plant 1 and the Changzhou Plant in China, which started mass production last year.
Early stabilization of overseas plants has led to an increase in sales and improving profitability.
The Yancheng and Huizhou plants in China are scheduled to begin mass-production from the first quarter of this year, and are expected to improve their earnings further.
In addition, the second plant in Hungary with a scale of 9.8 GWh in the first quarter of next year, the third plant in the first quarter of 2024, the first plant with a 9.8 GWh scale in Georgia, the US in the first quarter of 2022, and the second plant with a 11.7 GWh scale in the first quarter of 2022. It plans to mass-produce from the first quarter of 2023.
SK Innovation aims to have a global battery production capacity of 85GWh by 2023 and 125GWh by 2025.
It is planning to continue aggressive investments in line with the rapid growth of electric vehicles by deciding to add more than 25GWh from 100GWh, which was originally targeted in 2025.
In the material business, we are continuously expanding overseas facilities for separators, and currently, 530 million m2 of Cheongju and Jeungpyeong factories in Chungcheongbuk-do Province and 340 million m2 of Chinese factories have been put into operation since the end of last year, and have an annual scale of 870 million m2 It has the production capacity of
If overseas factories such as China and Poland are put into operation sequentially, the production capacity is expected to reach 1.37 billion m2 by the end of this year and 1.87 billion m2 by 2023.
An official of SK Innovation said, “Last year, in the context of deteriorating earnings due to Corona 19 and expanding investment in new growth businesses, we decided not to pay dividends to improve our financial structure, but we consider shareholder-oriented management as an important value of SK Innovation. “We are establishing a plan to return to shareholders in the mid- to long-term in consideration of the corporate value through business,” he said.
SK Innovation President Kim Joon said, “The company’s new growth business is realizing tangible results even in the worst business environment that has never been experienced due to Corona 19.” In addition, we will promote total and fundamental innovation focused on eco-friendliness in our existing business.”
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