[이코노믹리뷰=박민규 기자] It was found that SK Innovation (096770) suffered a huge blow to the oil business last year in the aftermath of a novel coronavirus infection (Corona 19), resulting in a huge deficit of 2 trillion won. However, it is explained that the battery business continued its growth by achieving trillions of sales for the first time.
SK Innovation announced on the 29th that it recorded sales of 34.16 trillion won and an operating loss of 2.568.8 billion won when it announced its 2020 management results. Sales plunged 30.7% year-on-year, and operating profit turned to a deficit.
By each business: ▲Oil business sales of 22,637.9 billion won, operating loss of 2,222.8 billion won ▲Chemical business sales of 7,541 billion won, operating loss of 121.2 billion won ▲Lubricating oil business sales of 2.371.3 billion won and operating profit of 2622 billion won ▲Battery business sales of 1 trillion won It recorded an annual performance of 6102 billion won, operating loss 4265 billion won ▲ oil development business sales of 59.3 billion won, operating loss 4.8 billion won ▲ materials business operating profit of 125.9 billion won.
In particular, operating losses in the oil business amounted to 86.5% of the total deficit, suggesting that the Corona 19 hit was quite serious. In addition, SK Innovation suffered losses in the oil development business and chemical business. The battery business was also inevitable, but sales increased more than twice as compared to the previous year’s 69.3 billion won.
Looking at the results of the fourth quarter of 2020 alone, sales shrank 34.1% from the same period of the previous year to KRW 7.677.6 trillion and operating profit turned to a deficit, recording -243.4 billion KRW, respectively. By business: ▲Oil business sales of 4.76 trillion won, operating loss of 1925 billion won ▲ Chemical business sales of 1.619.4 billion won, operating loss of 46.2 billion won ▲Lubricating oil business sales of 652 billion won, operating profit of 125.3 billion won ▲Battery business sales of 4972 billion won Operating loss 1089 100 million won ▲Oil development business sales of 14 billion won, operating profit of 1.6 billion won ▲ materials business operating profit of 25.3 billion won.
In particular, the battery business recorded a quarterly high with sales of 4972 billion won over the same period. This is 2.2 times of sales of 225 billion won in the same period last year. Although profitability is continually improving, SK Innovation explained that operating losses were recorded due to initial costs incurred by overseas plants.
In the materials business, operating profit fell by KRW 4.6 billion from the previous quarter despite an increase in sales of lithium-ion battery separators (LiBS). This is explained by the effects of initial fixed costs and a decline in the exchange rate from the operation of new Chinese facilities.
SK Innovation is paying attention to the battery and material business as its core growth engine.
The battery business is now on a full-fledged growth trajectory, and battery sales and profitability are improving rapidly due to early stabilization at the Changzhou plant in China and the first plant in Hungary.
An official from SK Innovation said, “If the 20 gigawatt hours per year (GWh) plants we are building in Yancheng and Huizhou, China, are fully operational in the first quarter of this year, SK Innovation’s battery production capacity will be 40GWh, which is 4 from the end of 2019. He said, “The battery business will continue to grow in sales,” he said.
In the material business, SK Innovation is also promoting overseas capacity expansion, mainly LiBS. If factories in China and Poland start operation sequentially, SK Innovation’s LiBS production capacity at the end of this year is expected to reach 1.37 billion m2.
On the other hand, SK Innovation said, “We have decided not to pay dividends to improve our financial structure in a situation where we are expanding investment in new growth businesses after experiencing deteriorating performance from Corona 19, but a company that reflects management performance and new business in the aspect of shareholder-oriented management. Considering the value, etc., a mid- to long-term shareholder return plan is being established.”
SK Innovation President Kim Joon said, “(SK Innovation) is making tangible results in new growth businesses even in the midst of the worst management environment unprecedented due to Corona 19. This year is a new business as the first year of full-scale implementation of the financial story. In addition, we will promote fundamental and total innovation focused on eco-friendliness in our existing business.”