April 19, 2024

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[THE INVESTOR] SK Innovation’s third-quarter earnings were in line with market consensus, said Eugene Investment and Securities on Nov. 5 maintaining a “buy” recommendation and 270,000 won (US$240.36) target price. 

Its revenue in the period increased 27.2 percent on-year to 14.9 trillion won and operating profit by 13.3 percent to 835.8 billion won. Although inventory profit declined from quarterly oil price difference, sales ratio of higher-added value products in lubricants sector increased. Exploration and production unit’s sale price also rose along with oil price and improved its profitability, said analyst Hwang Seong-hyeon.

Uncertainties for oil companies are growing as ratio of light oil expands globally and demand for gasoline weakens. However, margins of kerosene and diesel remain strong and gross refinery margin is likely to remain relatively stable at the current level, forecast the analyst.

By Hwang You-mee (glamazon@heraldcorp.com)